A subsidiary of Byner Corporation has one asset (inventory) and no liabilities. The functional cur¬ rency for this subsidiary is the peso. The inventory was acquired for 100,000 pesos when the exchange rate was $0.16=1 peso. Consolidated statements are to be produced, and the current exchange rate is $0.19 = 1 peso. Which of the following statements is true for the consolidated financial statements? LO6

a. A remeasurement gain must be reported.

b. A positive translation adjustment must be reported.

c. A negative translation adjustment must be reported.

d. A remeasurement loss must be reported.