On January $1,$ Year $5,$ CAN acquired a $70$ percent interest in SEN, a Swiss company, for SF$500,000.$ On that date, the exchange rate was SF$1=$ C$$1\mathrm{.}07.$ SEN is an integrated foreign operation $($i$.$e$.,$ the foreign subsidiary uses the same functional currency as the parent$).$ In translating the financial statements of SEN on December $31,$ Year $5,$ which of the following statements on accounting exposure is true?

Multiple Choice

SEN will recognize an exchange loss on translation pertaining to its investment in land if the exchange rate changes to SF$1=$ C$$1\mathrm{.}06.$

SEN will recognize an exchange loss on translation pertaining to its investment in land if the exchange rate changes to SF$1=$ C$$1\mathrm{.}08.$

SEN will recognize an exchange loss on translation pertaining to its accounts receivable if the exchange rate changes to SF$1=$ C$$1\mathrm{.}08.$

SEN will recognize an exchange loss on translation pertaining to its accounts receivable if the exchange rate changes to SF$1=$ C$$1\mathrm{.}06.$