Answer: Remeasurement loss of $21,970
Explanation:
The figures will have to be converted from Euros to US$ for the calculation. 
The relevant exchange rate will be the rate on the date of the transaction. 
                                                               Amount      Exchange rate    $Amount
Opening cash                                     528,000           1.14                   601,920
Increase in Cash assets:
Sale of inventory                                 160,000             1.20                192,000
                                                             688,000                                   793,920
Decrease in cash assets:
Acquisition of warehouse                 300,000             1.14                (342,000)
Purchase of inventory                       100,000              1.18                (118,000)
Transfer to parent                              10,000                1.18                 (11,800)
Ending net cash assets                     278,000                                   322,120
Remeasurement gain(loss) at 31 December = Ending net cash assets at current rate - Ending net cash assets 
= (278,000 * 1.08) - 322,120
= 300,240 - 322,120
= ($21,970)
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