Assume the subsidiary's functional currency is the U.S. dollar. What is the remeasurement gain or loss for 2014?
a. $162,000 loss
b. $ 30,000 loss
c. $162,000 gain
d. $ 30,000 gain
Use the following information to answer questions 3 and 4:
A U.S. parent owns all of the stock of an Italian subsidiary. The subsidiary's January 1 and December 31. 2014 trial balances are as follows, in euros:

Sales, purchases, and recurring out of pocket expenses occurred evenly throughout the year. Exchange rates ($/‚¬) are:
January 1, 2014$1.45
Average for 20141.35
Rate when dividends declared1.32
December 31, 20141.30

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January 1, 2014 Dr (Cr) December 31, 2014 Dr (Cr) 180,000 500,000 1,300,000 (1,080,000) (200,000) (600,000) 100,000 (4,000,000) 2,300,000 300,000 1,200,000 400,000 1,600,000 (1,400,000) (200,000) (600,000) Liabilities.... Capital stock rnings, beginning.... Cost of goods sold... ._... .__. ..