The 2021 Beginning and Ending Trial Balances of a German

The 2021 beginning and ending trial balances of a German subsidiary of a U.S. company appear below, in euros.
$\begin{array}{|l|r|r|}\hline& \text { January 1 } & \text { December 31 } \\&\text { Dr(Cr) } & \text { Dr (Cr) }\\\hline \text { Cash and receivables } & € 40,000 & € \quad 50,000 \\\hline \text { Inventories at cost } & 100,000 & 110,000 \\\hline \text { Plant and equipment, net } & 500,000 & 560,000 \\\hline \text { Liabilities } & (400,000)& (440,000) \\\hline \text { Capital stock } & (50,000) & (50,000) \\\hline \text { Retained earnings, January 1 } &(190,000) & (190,000) \\\hline \text { Dividends } & & 60,000 \\\hline \text { Sales } & & (1,400,000) \\\hline \text { Cost of goods sold } & € \quad 0 & 950,000 \\\hline \text { Operating expenses } & & \underline{350,000} \\\hline \text { Total } & € \quad 0&€ \quad 0 \\\hline\end{array}$

$\text { Exchange rates }\{\$ / €\} \text { are: }$

$\begin{array}{lr}\text { January } 1,2021 & \$ 1.23 \\\text { Average for } 2021 & 1.22 \\\text { December 31, 2021 } & 1.20\end{array}$
Additional information:
1. Dividends were declared on November 1, 2021, when the exchange rate was $1.21.
2. Sales, inventory purchases, and out-of-pocket operating expenses were incurred evenly during the year.
3. Plant and equipment on hand at the beginning of the year was purchased when the exchange rate was $1.23/€. Equipment of €80,000 was acquired during 2021, when the exchange rate was $1.225.
4. Depreciation of €20,000 is included in operating expenses. Of that amount, €4,000 relates to plant and equipment acquired during 2021.
Required
a. Assume the subsidiary's functional currency is the U.S. dollar. Compute the remeasurement gain or loss for 2021. Specify whether it is a gain or a loss.
b. Assume the subsidiary's functional currency is the euro. Compute the translation gain or loss for 2021. Specify whether it is a gain or a loss.