A U.S. parent owns a subsidiary in the U.K. The subsidiary pays cash to invest in the equity securities of another company, categorizing the investment as an equity method investment. How does this transaction affect the subsidiarys exposure to remeasurement or translation gains or losses?

Select one:

a. Translation exposure changes

b. Neither remeasurement nor translation exposure changes

c. Remeasurement exposure changes

d. Both remeasurement and translation exposures change