One of our subsidiary companies maintains its accounting records in Euros and designates the British Pound as its functional currency. Your computations yield a translation gain of $5,000 and a remeasurement loss of $7,000. What amount should yo report as a gain or loss in your income statement? Explain how you arrived at your conlusion.

A. $0

B. $5,000

C. ($7,000)

D. ($2,000)