Kwon co. is headquartered in Seoul, Korea and maintains its accounting records in the Korean Won currency. However, Kwon co. applies US accounting principles since its shares are listed on the NY stock exchange. Kwon owns 100% of Siesta company located in Santiago, Chile. All of Siestas Workers except the factory manager are Chilean and 85% of the material used in siestas factory is purchased in Chile while the remainder is purchased in Korea. Siesta co sells its products all over the world and prices are denominated in the Chilean Peso. During the past three years Chiles inflation rate has average 40% annuity. Based on this information, which of the following Statements are true?

1. Siestas functional currency is the Chilean peso and the current method should be used for translation.
2. Siestas functional currency is the Korean Won and the Temporal method should be used for re-measurement.
3. Siestas functional currency is the Korean Won and current method should be used for translation.
4. Siestas functional currency is the Chilean Peso and the temporal method should be used for remeasurement.
5. None of the above