A U.S. company owns a 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the partent company sold inventory that had cost $24,000 to the subsidiary on account for $30,000 when the exchange rate was $.05192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the fiscal period. The unsettled account is denominated in dollars. The exchange rate at the fiscal year-end was $.04994.

Please explain how the this transaction gain or loss would be reported on the foreign entity's financial statements. Do math if you need to, but I really just want an explanation.