The Gain or Loss on the Effective Portion of a U.S.parent

Multiple Choice

The gain or loss on the effective portion of a U.S.parent company's hedge of a net investment in a foreign entity should be treated as:

A) an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.
B) other comprehensive income.
C) a translation gain or loss in the computation of net income for the reporting period.
D) an adjustment to a valuation account in the asset section of its balance sheet.