Four Seasons Inc. starts a subsidiary in Switzerland. The functional currency of the subsidiary is the swiss franc. On January 1, the subsidiarys balance sheet revealed the following balances:

Cash..SF 20,000 Notes payableSF 28,000

Inventory. 25,000 Common stock 15,000

Land. 5,000 Retained Earnings 10,000

Equipment ... 3,000

Total 53,000 53,000

The following transactions are the only transaction that took place during the year. On April 1, the subsidiary purchases inventory for 25,000 francs for cash and sells this inventory on August 1 for 35,000 francs on account. May 1, the subsidiary sells the land for 7,000 cash. On October 1, the company incurred an operating expense in the amount of 5,000 francs, which was immediately paid in cash. Currency exchanges rates for 1 franc are as follows:

January 1 $0.88 = 1 franc

April 1 0.896 = 1

May 1 0.91 = 1

August 1 0.93 = 1

October 1 0.94 = 1

December 31 0.96 = 1

Assume that the foreign subsidiary uses the US dollar as its functional currency. In preparing consolidated financial statements, what remeasurement gain or loss will Four Seasons report at the end of the current year?

$ 940 remeasurement loss

$ 760 remeasurement gain

$ 760 remeasurement loss

$ 940 remeasurement gain