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A subsidiary of Byner Corporation has one asset (inventory) and no liabilities. The functional currency for this subsidiary is the peso. The inventory was acquired for 100,000 pesos when the exchange rate was $0.16 =1 peso. Consolidated statements are to be produced, and the current exchange rate is $0.19 = 1 peso. Which of the following statements is true for the consolidated financial statements?
a. A remeasurement gain must be reported.
b. A positive translation adjustment must be reported.
c. A negative translation adjustment must be reported.
d. A remeasurement loss must be reported.
Bank selection for international business acquisition.
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