Asda is a British supermarket chain owned by Wal-Mart Stores, Inc., and headquartered in Leeds, West Yorkshire, England. Assume that the following data relate to Asda's activities for 2014 (in millions).
Net assets (liabilities) reported at fair value, January 1, 2014£ 700
Acquisition of plant assets for debt, February 15, 2014 1,000
Purchase of inventory made evenly during 20143,500
Collection of receivables outstanding at January 1, 20142,700
Sales made evenly during 20146,000
Cost of goods sold3,300
Depreciation of assets acquired when the exchange rate was $1.80/2 400
Current operating expenses (excluding depreciation and amortization),incurred evenly during 2014............................................................................................................1,200
Refinancing or "rollover" of commercial paper800
Exchange rates ($/£) during 2014 are:

Required
a. Assuming Asda's functional currency is the U.S. dollar, prepare a schedule to compute the remeasurement gain or loss during 2014.
b. Assuming Asda's functional currency is the pound, prepare a schedule to compute the translation gain or loss for 2014. Assume net assets on January 1,2014, amounted to £1,200 million.

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1.95 December 31, 2014 2.01