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On January 1, 2018, Pine Company acquired Spin PLC, a British subsidiary, by purchasing all its common stock at book value. Additional Information 1. Spin

On January 1, 2018, Pine Company acquired Spin PLC, a British subsidiary, by purchasing all its common stock at book value.
Additional Information
1.
Spin uses the FIFO method for its inventory. The beginning
inventory was acquired on December 31, 2017, and
ending inventory was acquired on December 26, 2018.
Purchases of 300,000 were made evenly throughout 2018.
2.
Building and equipment were acquired as follows:
Date
Cost
January 1, 2016
100,000
December 31, 2017
130,000
July 1, 2018
100,000
Building and equipment are depreciated using
straight-line method and a 10-year life, with no salvage
value.
3.
Spin's sales were made evenly throughout 2018, and its
operating expenses were incurred evenly throughout 2018.
4.
Dividends of 5,000 were declared and paid on July 1, 2018
and on November 1, 2018.
Exchange Rates Table
January 1, 2016
1
$1.20
December 31, 2017
1
$1.25
January 1, 2018
1
$1.25
July 1, 2018
1
$1.26
November 1, 2018
1
$1.27
December 26, 2018
1
$1.31
December 31, 2018
1
$1.35
Average for 2018
1
$1.30
Assume the U.S. dollar is the functional currency.
Spin Company
Trial Balance
December 31, 2018
Item
Pounds
Cash
72,000
Accounts receivable (net)
50,000
Marketable securities
50,000
Inventory
120,000
Building & equipment
330,000
Cost of goods sold
270,000
Operating expenses
60,000
Depreciation expense
28,000
Dividends paid
10,000
Total
990,000
Accumulated depreciation
48,000
Accounts payable
182,000
Notes payable
90,000
Common stock
100,000
Retained earnings
150,000
Sales
420,000
Total
990,000
Using the appropriate restatement method, what is the resulting gain (loss) and where should it be closed to:
Select one:
a. Foreign currency translation gain/(loss) closed to retained earnings.
b. Remeasurement gain/(loss) closed to income summary then to retained earnings.
c. Remeasurement gain/(loss) closed to accumulated other comprehensive income.
d. Foreign currency translation gain/(loss) closed to other comprehensive income.

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