18. San Clemente Corporation, whose reporting currency is the mark (M), establishes a foreign subsidiary, whose reporting currency is the peseta (P), On January 1, Year 1, San Clemente contributes Cash of P20,000 to the foreign subsidiary in exchange for Common Stock. and the subsidiary purchases Land for P30,000 by negotiating a 10-year Note Payable of P30,000. On February I. Year I, the subsidiary purchases Equipment for P12,000. Sales, Salary Expense, and Other Operating Expenses are incurred evenly throughout Year I. The foreign subsidiary declares Dividends of P10,000 on December 1. Year I. Relevant exchange rates for Year 1 are as follows (Mark per Pescta): On December 31, Year 1, the subsidiary reports the following trial balance (in pesetas): Page313 Required: 3. Assume that the foreign subsidiary's functional currency is the peseta (P). Prepare a trial balance for it in marks (M) so that Year I consolidated financial statements can be prepared. Show the calculation of translation adjustmeat for Year 1 . Ignore income taxes b. Assume that the foreign subsidiary's functional currency is the mark (M). Prepare a trial balance for it in marks (M) so that Year 1 consolidated financial statements can be prepared. Show the calcalation of remeasurement gain (loss) for Year 1. Ignore incone taxes