Bremmer Company's functional currency is the Euro. On February 1, 20X1, when the exchange rate is $1.20 per Euro, Bremmer purchases 100 units of inventory for a total purchase price of 4,300 Euros. Bremmer sells half of the inventory on March 24 and the other half on April 14. The exchange rate is $1.17 on March 24 and $1.21 on April 14. Assume that Bremmer's functional currency is the U.S. dollar (instead of the Euro) and that Bremmer keeps records denominated in dollars. On March 24, Bremmer would record the exchange rate fluctuation related to inventory with this journal entry:

Multiple Choice

• OCICurrency Translation	$129
  Inventory		$129

• No journal entry is made.

• Inventory	$129
  OCICurrency Translation		$129

• Foreign Currency loss	$129
  Inventory		$129