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The 2021 beginning and ending trial balances of a German subsidiary of a U.S. company appear below, in euros.

	1-Jan	31-Dec
	Dr(Cr)	Dr (Cr)
Cash and receivables	44,800	56,000
Inventories at cost	112,000	123,200
Investments, at market	84,000	106,400
Plant and equipment, net	560,000	627,200
Intangibles, net	28,000	30,240
Accounts Payable	(168,000)	(212,800)
Unearned Revenue	(89,600)	(72,800)
Notes Payable	(224,000)	(252,000)
Deferred Tax Liabilities	(78,400)	(91,840)
Capital stock	(56,000)	(56,000)
Retained earnings, January 1	(212,800)	(212,800)
Dividends		67,200
Sales		(1,568,000)
Cost of goods sold		1,064,000
Operating expenses	_______	392,000
Total	0	0

Exchange rates ($/) are:

January 1, 2021 $1.28

Average for 2021 1.22

December 31, 2021 1.19

Additional information:

1. Dividends were declared on November 1, 2021, when the exchange rate was $1.245.

2. Sales, inventory purchases, and out-of-pocket operating expenses were incurred evenly during the year.

3. Plant and equipment on hand at the beginning of the year was purchased when the exchange rate was $1.25/. Equipment of 80,000 was acquired during 2021, when the exchange rate was $1.225.

4. Depreciation of 20,000 is included in operating expenses. Of that amount, 4,000 relates to plant and equipment acquired during 2021.

Required:

a. Assume the subsidiarys functional currency is the U.S. dollar. Compute the remeasurement gain or loss for 2021. Also, prepare a schedule to show how remeasuremnent gain/loss is calculated.

	Dr (Cr)	Rate	U.S. $
Cash and receivables	56,000
Inventories at cost	123,200
Investments, at market	106,400
Plant and equipment, net	627,200
Intangibles, net	30,240
Accounts Payable	(212,800)
Unearned Revenue	(72,800)
Notes Payable	(252,000)
Deferred Tax Liabilities	(91,840)
Capital stock	(56,000)
Retained earnings, January 1	(212,800)
Dividends	67,200
Sales	(1,568,000)
Cost of goods sold	1,064,000
Operating expenses	392,000
Remeasurement (gain)/loss
Total	0

b. Assume the subsidiarys functional currency is the euro. Compute the translation gain or loss for 2021. Also, prepare a schedule to show how translation gain/loss is calculated.

	Dr (Cr)	Rate	U.S. $
Cash and receivables	56,000
Inventories at cost	123,200
Investments, at market	106,400
Plant and equipment, net	627,200
Intangibles, net	30,240
Accounts Payable	(212,800)
Unearned Revenue	(72,800)
Notes Payable	(252,000)
Deferred Tax Liabilities	(91,840)
Capital stock	(56,000)
Retained earnings, January 1	(212,800)
Dividends	67,200
Sales	(1,568,000)
Cost of goods sold	1,064,000
Operating expenses	392,000
Translation (gain)/loss
Total	0

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