Refer to the information in problem P7.2.
In problem 7.2
Domestic Corporation, a U.S. firm, acquired Valiant AB on January 1,2013. Valiant is a Swedish company that has been in existence for several years, and whose functional currency is the U.S. dollar. Comparative account balances for January 1 and December 31,2013, appear below, measured in krona (kr), the Swedish currency.

Required
Repeat the requirements of problem P7.2, assuming the krona (kr) is the functional currency of the subsidiary. As part of part b, prepare a schedule calculating the 2013 translation adjustment and the December 31, 2013, balance for accumulated other comprehensive income.
In problem 7.2
a. Remeasure Valiant's 2013 beginning and ending trial balances into dollars.
b. Prepare a remeasured income statement and balance sheet for Valiant, plus a schedule calculating the 2013 remeasurement gain or loss.

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Dr (Cr) Account Balances January 1 December 31 Cash... -. . Accounts receivable, net Plant and equipment, net Accounts payable.r. Notes payable Capital stock Retained earnings, January Sales Depreciation expense.... Other expenses . TotalsA... kr 175,000 400,000 2,320,000 (535,000) (800,000) (400,000) (1,160,000) kr 240,000 360,000 2,000,000 200,000) (600,000) (400,000) (1,160,000) (1.200,000) 320,000 640,000 kr 0 kr Date January 1,2013. Average for 2013ac December 31,2013. S/kr $0.16 ww.0.17 0.19