Suppose the English Subsidiary of a U

Multiple Choice

Suppose the English subsidiary of a U.S.firm had current assets of £1 million,fixed assets of £2 million and current liabilities of 1 million pounds both at the start and at the end of the year.There are no long-term liabilities.If the pound depreciated during that year from $1.50 to $1.30,the translation gain loss to be included in the parent company's equity account according to FASB #52 is

A) 0 since the current assets and current liabilities cancel
B) +$200,000
C) -$250,000
D) -$400,000