While preparing end-of-year financial statements, a parent company translates its financial statements for a foreign subsidiary. If the foreign currency has depreciated over the past year and the company has a net asset balance sheet position, which of the following statements is most accurate?

Question 1 options:

	A. It will record a negative translation adjustment.
	B. It will record no translation adjustment.
	C. It will record no transaction gain or loss.
	D. It will record a positive translation adjustment.