Continental Corporation owns a subsidiary located in a foreign country. Over the past year, the local currency (LC) has continued to depreciate relative to Continentals presentation currency. Using the following data, determine the translation effect on Continentals investment for the year.

	Beginning of year	End of year
Monetary assets	LC 20 million	LC 24 million
Monetary liabilities	LC 35 million	LC 40 million
Total assets	LC 47 million	LC 53 million
Total liabilities	LC 38 million	LC 42 million

A) No gain or loss is reported under either the current rate method or the temporal method.

B) Continental will report a loss under the current rate method and a gain under the temporal method.

C) Continental will report a gain under the current rate method and a loss under the temporal method.