I understand the answer is 20,200 but I'm not sure why depreciation on the warehouse of 10,000 euros are excluded on the income statement when it's still an expense. Can someone answer this please?

Charleston Corporation operates a branch operation in a foreign country. Although this branch operates in euros, the U.S. dollar is its functional currency. Thus, a remeasurement is necessary to produce 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 to acquire a warehouse. On May 1, it purchased inventory costing 100,000 euros for cash that it sold 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. Currency 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 1.08 = 1 1.16 = 1 What is the remeasurement gain or loss to be recognized in the consolidated income statement? Exchange Amount Value Rate (in S) 500.000 $1.14 $570.000 Particulars Beginning net monetary assets Increase in net monetary assets: Sale of inventory 160,000 $1.20 $192.000 $762,000 Decrease in net monetary assets: Purchase of warehouse Purchase of inventory Transfer to parent Ending net monetary assets on 31 December Ending net monetary assets at the current exchange rate Remeasurement loss - 300.000 - 100.000 10.000 250,000 $1.14 -$342.000 $1.18 -$118.000 $1.18 -$11.800 $290,200 250.000 $1.08 $270.000 $20,200