Assume the subsidiary’s functional currency is the U.S. dollar. What is the remeasurement gain or loss for 2017?

a,  \($162,000\) loss

b.  \($30,000\) loss

c.  \($162,000\) gain

d.   \($30,000\) gain 

A USS. parent owns all of the stock of an Italian subsidiary. The subsidiary’s January 1 and December 31, 2017 trial balances are as follows, in euros:

Sales, purchases, and recurring out of pocket expenses occurred evenly throughout the year. Exchange rates (\($/€)\) are:

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Cash, receivables. Inventories, at FIFO cost Plant & equipment, net.. Liabilities.. Capital stock Retained earnings, beginning. Dividends. Sales revenue.. Cost of goods sold. Depreciation expense. Out of pocket expenses. January 1, 2017 Dr (Cr) 200,000 400,000 1,600,000 (1,400,000) December 31, 2017 Dr (Cr) 180,000 500,000 1,300,000 (1,080,000) (200,000) (200,000) (600,000) (600,000) 0 100,000 (4,000,000) 2,300,000 300,000 1,200,000 0