Paul, Inc. had a positive (credit) cumulative translation adjustment of $200,000 in the equity sectionof its balance sheet pertaining to its investment in Sierra Ltd at the date that Paul sold its interest in Sierra.How must Paul handle this cumulative translation adjustment when it records the sale of Sierra?

A. as an increase in income (gain on disposal)

B. The cumulative translation adjustment will not be affected by the sale.

C. as a decrease in income (loss on disposal)

D. It will be a prior period adjustment to retained earnings.