Use the Following Information to Answer Bellow Questions
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Use the following information to answer bellow Questions
A U.S. company acquired a Turkish subsidiary at the beginning of the current year. The subsidiary's trial balances for January 1 and December 31 are presented bellow, in Turkish lira.
$\begin{array}{|l|c|c|}\hline & \begin{array}{c}\text { January } 1 \\\text { Dr (Cr) }\end{array} & \begin{array}{c}\text { December } 31 \\\text { Dr (Cr) } \\\end{array} \\\hline \text { Cash, receivables } & \text { ? } 40,000 & \text { ? } 20,000 \\ \hline \text { Plant \& equipment, net } & 400,000 & 435,000 \\\hline \text { Liabilities } & \{175,000\} & \{170,000\} \\\hline \text { Capital stock } & \{115,000\} & \{115,000\} \\\hline \text { Retained earnings, January } 1 & \{150,000\} & \{150,000\} \\\hline \text { Dividends } & & 15,000 \\\hline \text { Sales revenue } & & \{800,000\} \\\hline \text { Operating expenses } & & 765,000 \\\hline \text { Total } &\underline{ ? \quad0} &\underline{ ? \quad0} \\ \hline\end{array}$
New plant & equipment of ?100,000 was acquired during the year. Operating expenses include ?65,000 of depreciation on plant & equipment, of which ?10,000 is related to plant & equipment purchased during the year. Exchange rates (U.S.$/?) are as follows:
$$\begin{array} { l r } \text { January 1 } & \$ 0.24 \\\text { Average for year } & 0.25 \\\text { Plant \& equipment acquired } & 0.26 \\\text { Dividends declared } & 0.27 \\\text { December 31 } & 0.30\end{array}$$
-Assume that the subsidiary's functional currency is the Turkish lira. What is the translation gain or loss for the year?

A) $15,800 gain
B) $13,150 loss
C) $17,200 gain
D) $14,600 loss