Xena Corporation Has a Foreign Subsidiary, Zeta Corporation, Located in Japan

Xena Corporation has a foreign subsidiary, Zeta Corporation, located in Japan. At the end of fiscal 2006, Zeta has:
$\begin{array}{ll}\text { Non-monetary assets } & 55 \text { million Yen } \\\text { Monetary assets } & 20 \text { million Yen } \\\text { Non-monetary liabilities } & 30 \text { million Yen } \\\text { Monetary liabilities } & 25 \text { million Yen }\end{array}$
-Assume Xena uses the temporal method for translating Zeta's financial statements from the yen into U.S. dollars. If the yen appreciates relative to the dollar, which of the following is true?

A) Xena will record a foreign currency translation gain on the income statement.
B) Xena will record a foreign currency translation loss on the income statement.
C) Xena will record a foreign currency translation gain in the equity section of the balance sheet.
D) Xena will record a foreign currency translation loss in the equity section of the balance sheet.