Note: This is a Kaplan CPA Review Question
Park Co.'s wholly-owned subsidiary, Schnell Corp., maintains its accounting records in German marks. Because all of Schnell's branch offices are in Switzerland, its functional currency is the Swiss franc. Remeasurement of Schnell's 20X1 financial statements resulted in a $7,600 gain, and translation of its financial statements resulted in an $8,100 gain. What amount should Park report as a foreign exchange gain in its income statement for the year ended December 31, 20X1?
A) $15,700
B) $0
C) $8,100
D) $7,600

Question

Quizplus · Accepted Answer

The remeasurement gain of $7,600 is reported in the income statement, while the translation gain of $8,100 is reported in other comprehensive income.

Note: This Is a Kaplan CPA Review Question