A Belgium subsidiarys beginning and ending trial balances appear below:

Dr (Cr)

January 1

December 31

Cash, receivables

1,500

1,200

Inventories

3,000

3,500

Plant & equipment, net

30,000

39,000

Liabilities

(18,500)

(27,200)

Capital stock

(4,000)

(4,000)

Retained earnings, beginning

(12,000)

(12,000)

Sales revenue

--

(15,000)

Cost of sales

9,500

Out-of-pocket selling & administrative expenses

--

4,000

Depreciation expense

--

1,000

Total

0

0

Exchange rates ($/) are:

Beginning of year

$1.25

Average for year

1.22

End of year

1.20

The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and out-of-pocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for 10,000 when the exchange rate was $1.23. Depreciation for the year includes 200 related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year.

If the subsidiarys functional currency is the U.S. dollar, what is the remeasurement gain or loss for the year?

Question 1 options:

a)

$1,030 loss

b)

$1,130 loss

c)

$810 loss

d)

$2,200 gain