To the extent that a fair value hedge is effective in serving its purpose, the gain or loss on the derivative will be offset by the loss or gain on the item being hedged. Explain.

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The Answer of To the extent that a fair value hedge is effective in serving its purpose, the gain or loss on the derivative will be offset by the loss or gain on the item being hedged. Explain.

To the Extent That a Fair Value Hedge Is Effective