On January 1, 2018, a U.S. company established a subsidiary in Canada, having the following balance sheet (shown in Canadian dollars, or C$): Cash C$ 100,000 Liabilities C$ 200,000 Fixed assets, net 300,000 Capital stock 200,000 Total C$ 400 000 Total C$ 400,000

At December 31, 2018, the subsidiary reported the following trial balance:

Dr (Cr) Cash C$ 210,000 Fixed assets, net 250,000 Liabilities (220,000) Capital stock (200,000) Sales (500,000) Depreciation expense 50,000 Out-of-pocket expense 410,000 = C$ 0

Exchange rates are as follows:

January 1, 2018 $0.80

Average for 2018 0.82

December 31, 2018 0.85

What is the gain or loss that occurs when the subsidiarys trial balance is translated into U.S. dollars?

A. $11,200 gain

B. $10,800 loss

C. $ 1,200 gain

D. $ 9,700 loss