Kappa acquired 60 per cent of the equity share capital of Sigma on 1 January 20X8 for A$3m. Kappa's functional and presentational currency is the A$. At the date of acquisition, Sigma had 4,000,000 B$0.50 equity shares in issue and retained earnings of B$710,000. Sigma made a profit for the year of B$202,000 and had other comprehensive income of B$30,000. Relevant exchange rates are 1 January 20X8 A$1 = B$3.00 31 December 20X8 A$1 = B$4.00 Average rate for 20X8 A$1 = B$3.50 What is the exchange difference on net assets for the year ended 31 December 20X8? Solution A.A$234,000 loss. B.A$234,000 gain. C.A$400,000 loss. D.A$400,000 gain