Gymsonis an Italian subsidiary of U.S. company Universal Playgrounds, Inc.Gymson began operations on January 1,2018.Its comparative balance sheets for January 1 and December 31, 2018, are presented below in euros:

1/1/1812/31/18

Cash and receivables10,00020,000

Inventories, at cost40,00090,000

Noncurrent assets, net 700,000530,000

Total assets750,000640,000

Liabilities550,000420,000

Capital stock200,000 200,000

Retained earnings0 20,000

Total liabilities and equity 750000 640,000

During 2018, the following events occurred:

1.Sales revenue was 2,000,000, earned evenly during the year.

2.Inventory purchases were 1,200,000, made evenly over the year.

3.Out-of-pocket operating expenses were 650,000, incurred evenly throughout the year.

4.Depreciation expense on equipment was 170,000.

5.Dividends of 10,000 were declared and paid when the exchange rate was $1.52/

Relevant exchange rates are as follows:

January 1, 2018$1.40

2018 average1.50

December 31, 20181.55

REQUIRED:Use the method we went over in class to directly calculate the translation gain/loss or the remeasurement gain/loss under each of the following assumptions (be sure to clearly identify which it is and whether it is a gain or loss):

A.Assume Gymson's functional currency is the euro.

B.Assume Gymson's functional currency is the U.S. dollar.