Sydney Corporation, an Australian-based multinational, borrowed 10,000,000 euros from a German lender at the beginning of the calendar year when the exchange rate was EUR.60 = AUD1. Before repaying...

Sydney Corporation, an Australian-based multinational, borrowed 10,000,000 euros from a German lender at the beginning of the calendar year when the exchange rate was EUR.60 = AUD1. Before repaying this oneyear loan, Sydney Corporation learns that the Australian dollar has depreciated to EUR.55 = AUD1. It also discovers that its Frankfurt subsidiary has an exposed net asset position of EUR30,000,000, which will produce a translation gain upon consolidation. What is the exchange gain or loss that will be reported in consolidated income if
a. The euro is the foreign operation’s functional currency?
b. The Australian dollar is the foreign operation’s functional currency?