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Business, 24.03.2020 20:11 dilibngalmira

The U. S. dollar has been steadily strengthening with respect to the Hong Kong dollar. A U. S. parent has a Hong Kong subsidiary. The subsidiary has positive net assets and its monetary assets are less than its liabilities. The subsidiary's functional currency is the U. S. dollar. Which statement is most likely to be true concerning the gain or loss resulting from conversion of the subsidiary's accounts to U. S. dollars? A. A loss will be reported in income. B. A gain will be reported in income. C. A loss will be reported in other comprehensive income. D. A gain will be reported in other comprehensive income.

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