foreign currency transaction accounting

MULTIPLE CHOICE

1. CPA Co.’s wholly owned subsidiary, BSAC Corporation maintains it accounting records in German
marks. Because all of BSAC’s branch offices are in Switzerland, its functional currency is the Swiss
francs. Remeasurement of its 2010 financial statement resulted in P3,800 gain and translation of its
financial statement resulted in P4,050 gain. What amount should CPA Co. report as foreign exchange
gain is included in the income statement for the year ended December 31, 2010?
a. P-0- c. P4,050
b. P3,800 d. P7,850
ANS: A PTS: 1