Your European subsidiary has cash and accounts receivable of 100 and 300 euros respectively, and accounts payable and short-term debt of 100 and 200 euros respectively. US headquarters re-measures these line items in dollars on November 1, when the dollar price of the euro rose from \($1.20\) per euro to \($1.30\) per euro. 

a Did headquarters experience translation losses or gains in terms of US dollars? 

b How are any such translation gains or losses entered into the balance sheet? 

c How could the European subsidiary have acquired balance sheet hedge against losses or gains from translation exposure?