The two true statements for the resulting revaluation run are that you have an unrealized exchange

gain recorded and you have an unrealized exchange loss recorded. Revaluation is a process that

adjusts foreign currency balances to reflect current exchange rates at period end. Revaluation creates

journal entries to record unrealized exchange gains or losses on foreign currency balances based on

revaluation rates defined for each currency. In this scenario, you have a balance on the Accounts

Payable Liability Account of 100,000 Euros which is equivalent to USD 136,550 at month end. The

month end exchange rate for revaluation is 1 Euro = 1.3755 USD. Therefore, after revaluation, your

balance on the Accounts Payable Liability Account will be USD 137,550 (100,000 x 1.3755). This

means you have an unrealized exchange gain of USD 1,000 (137,550 - 136,550) on your Accounts

Payable Liability Account because your liability in foreign currency has decreased in terms of your

ledger currency due to exchange rate fluctuations. Revaluation will create a journal entry to debit

your Accounts Payable Liability Account by USD 1,000 and credit your Unrealized Exchange Gain

Account by USD 1,000 to record this gain. The original journal entry in Euros is not updated by

revaluation, as revaluation only creates new journal entries to adjust foreign currency balances in

terms of ledger currency based on revaluation rates. There is no unrealized exchange gain or loss

calculated by revaluation, as revaluation does calculate unrealized exchange gains or losses on

foreign currency balances based on revaluation rates.