A U.S. company buys merchandise on credit (denominated in Euros) from a European company. For the U.S. company, which of the following statements is true?

		If the euro appreciates, a foreign exchange gain will occur.
		If the euro depreciates, a foreign exchange loss will occur.
		No foreign exchange gain or loss will occur.
		If the euro appreciates, a foreign exchange loss will occur.

Which of the following statements regarding foreign currency translation are least accurate? Under the:

		current rate method, the foreign currency translation gain or loss appears on the parent firm's income statement.
		temporal method, COGS and depreciation are remeasured using the historical rate.
		temporal method, sales are remeasured using the average rate.