Translation gain or loss A U.S. company acquired a subsidiary in the U.K at the beginning of the year. The subsidiary's beginning and ending trial balances, in pounds, are as follows: Beginning balances Ending balances Dr (Cr) Dr (Cr) Cash, receivables 100,000 1,300,000 Noncurrent assets, net 6,500,000 5,800,000 Liabilities (4,000,000) (4,200,000) Capital stock (600,000) (600,000) Retained earnings, beginning (2,000,000) (2,000,000) Revenues (4,000,000) Out-of-pocket-operating expenses 3,000,000 Depreciation, amortization 700,000 Revenues and out-of-pocket expenses were incurred evenly over the year. Noncurrent assets are carried at amortized cost, and no new noncurrent assets were acquired. Exchange rates (U.S. dollars/) are: Beginning of year $1.40 Average for the year 1.42 End of year 1.45 Assuming the subsidiary's functional currency is the pound, the translation gain or loss for the year is: Select one: $139,000 gain $165,000 loss $126,000 gain $142,000 loss