At the Beginning of 20X5, a Derivative Loss Associated with a Forecasted

question 44

Multiple Choice

At the beginning of 20X5, a derivative loss associated with a forecasted purchase of equipment will plus the expected cost of the equipment is $211,000.The fair value of the equipment is $199,000.The equipment has a useful life of 5 years.

• A)​$12,000 should be included in Other Comprehensive Income in 20X5.
• B)​$2,400 should be included in Other Comprehensive Income each year from 20X5 to 20X9.
• C)​$12,000 should be included in Income in 20X5.
• D)​$2,400 should be included in Income each year from 20X5 to 20X9.

---

Definitions:

Arcuate Fasciculus

Arcuate Fasciculus is a bundle of axons that forms part of the language network in the brain, connecting the Wernicke's area and Broca's area.

Cranial Nerves

The twelve pairs of nerves that originate in the brain and control sensory and motor functions in the head and neck.

Motor Area

A region of the brain, notably within the frontal lobe, responsible for the control of voluntary movements.

Presbyopia

A common age-related condition where the eye's lens loses the ability to focus on close objects, necessitating reading glasses or bifocals.