d. $2,400 positive (credit) LO 3-5 LO 8-5 tion methods used in preparing the foreign currency financial statements? c. Temporal method d. Monetaryonmonetary method on July 1 for 160,000 euros cash. The branch transferred 10,000 euros to the parent on October 1 and recorded depreciation on the warehouse of 10,000 euros for the year. U.S dollar exchange rates for 1 euro follow: January 1 May 1 July 1 October 1 December 31 Average for the year $1.14 = 1 euro 1.18 = 1 1.20 = 1 1.18 = 1 1.16 = 1 1.19 = 1 What is the remeasurement gain or loss to be recognized in the consolidated income statement? a. $100 gain b. $200 gain c. $100 loss d. $200 loss 16. Which of the following items is remeasured using the current exchange rate under the temporal method? 14. In the translated financial statements, which method of translation maintains the underlying values a. Current rate method; income statement translated at average exchange rate for the year 15. Charleston Corporation operates a branch operation in a foreign country. Although this branch oper ates in euros, the U.S. dollar is its functional currency. Thus, a remeasurement is necessary to pro duce financial information for external reporting purposes. The branch began the year with 500.000 euros in cash and no other assets or liabilities. However, the branch immediately used 300.000 euros b. Current rate method; income statement translated at exchange rate at the balance sheet date to acquire a warehouse. On May 1, it purchased inventory costing 100.000 euros for cash that it sold