The U$.$S$.$ dollar has been steadily strengthening with respect to the Hong Kong dollar $($e$.$g$.$ from $$\frac{0\mathrm{.}50}{H}KD$ to $$\frac{0\mathrm{.}55}{H}KD).$ A U$.$S$.$

parent has a Hong Kong subsidiary. The subsidiary has positive net assets and its monetary assets are less than its monetary

liabilities. The subsidiary's functional currency is the U$.$S$.$ dollar. Which statement is most likely to be true concerning the gain or loss

resulting from conversion of the subsidiary's accounts to U$.$S$.$ dollars?

A gain will be reported in income

A loss will be reported in other comprehensive income

A gain will be reported in other comprehensive income

A loss will be reported in income