6. P company a Mexican subsidiary of a US company, sold equipment costing 200,000 pesos with accumulated depreciation of 75,000 pesos for 140,000 pesos on 3/1/2018. The equipment was purchased on 1/1/2017. Relevant exchange rates for the peso are as follows:

1/1/2017 $0.110

3/1/2018 $0.106

12/31/2018 $0.102

Average 2018 $0.105

The financial statements for P are translated by its US parent. What amount of gain or loss would be reported in its translated income statement?

The financial statement for P are remeasured by its US parent. What amount of again of loss would be reported in its translated income statement?

Answers: $1590 and $1090

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