Which of the following statements is correct?

Multiple Choice

If the functional currency of the foreign operation is different than the parent's functional currency, the nonmonetary items recorded at cost must be translated using average rates.

If the functional currency of the foreign operation is the same as the parent's functional currency, the nonmonetary items recorded at cost must be translated using closing rates.

If the functional currency of the foreign operation is different than the parent's functional currency, the nonmonetary items recorded at cost must be translated using historical rates.

If the functional currency of the foreign operation is different than the parent's functional currency, the nonmonetary items recorded at cost must be translated using closing rates.