Explanation

When a foreign subsidiary has the parent's presentation currency as its functional currency, the temporal method is used for translation.

Under temporal method:

• PP&E (Property, Plant & Equipment) are non-monetary items measured at historical cost
• Non-monetary items measured at historical cost are translated at historical exchange rates
• This preserves the original cost basis in the parent's currency

Translation rates under temporal method:

• Monetary items: Current rate
• Non-monetary items at historical cost: Historical rate
• Non-monetary items at fair value: Current rate
• Revenue/expenses: Average rate (except for items related to balance sheet items translated at historical rates)

Option C is correct because PP&E measured at historical cost is translated at historical exchange rates under the temporal method.