Which is concerning conversion of the subsidiary accounts

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The U.S. dollar has been steadily weakeningWhich statement is most likely to be true with respect to the Hong Kong dollar. A U.S. parent has a Hong Kong subsidiary. The subsidiary has positive net assets and its assets carried at fair value are less than its liabilities. The subsidiary's functional currency is the U.S. dollar.

Problem 1: Which is concerning conversion of the subsidiary's accounts to U.S. dollars?

a. A remeasurement gain will be reported in income.

b. A remeasurement loss will be reported in income.

c. A translation gain will be reported in other comprehensive income.

d. A translation loss will be reported in other comprehensive income.

Reference no: EM132837998

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