Foreign currency translationNet income

A U.S.-based parent company acquired a European Unionbased subsidiary many years ago. The subsidiary is in the service sector, and earns revenues and incurs expenses evenly throughout the year. The following preclosing trial balance includes the subsidiarys original Euros-based accounting information for the year ended December 31, 2022, immediately prior to closing the companys nominal accounts into the corresponding balance sheet accounts. It also includes the information converted into $US based on the indicated exchange rates:

	$US Conversion
			Weighted-
Debits (Credits)	Euros	Current	Average	Historical
Monetary Assets	160,000.00	$192,000	$196,800	$208,000
Nonmonetary assets	640,000	768,000	787,200	832,000
Monetary Liabilities	(80,000)	(96,000)	(98,400)	(104,000)
Nonmonetary liabilities	(400,000)	(480,000)	(492,000)	(520,000)
Contributed capital	(192,000)	(230,400)	(236,160)	(268,800)
Retained earnings (January 1, 2022)	(80,000)	(96,000)	(98,400)	(112,000)
Revenues	(720,000)	(864,000)	(885,600)	n/a
Expenses	640,000	768,000	787,200	n/a
Dividends	32,000	38,400	39,360	40,000
Total	-

The items in the current column are multiplied times the spot rate at December 31, 2022. The items in the weighted-average column are multiplied times the rate weighted monthly over the year ending December 31, 2022. The individual items in the historical column are multiplied times the rate in effect at the later of the date the item originated or the acquisition date. When consolidating at December 31, 2021, the balance of retained earnings was $128,000 (i.e., a credit balance). In addition, through December 31, 2021, regardless of whether the subsidiary was translated or remeasured, the sum of all currency conversion gains and losses was an aggregate loss (i.e., a debit) of $80,000.

For this question assume the subsidiarys functional currency is the Euro. For the year ended December 31, 2022, what is the subsidiarys $US amount of net income (loss)?

Select one:

a. $107,200

b. $51,200

c. $98,400

d. $58,400