Alamo Inc. purchased 80 percent of the outstanding stock of Western Ranching Company, located in Australia, on January 1, 20X3. The purchase price in Australian dollars (A$) was A$200,000, and A$40,000 of the differential was allocated to plant and equipment, which is amortized over a 10-year period. The remainder of the differential was attributable to a patent. Alamo Inc. amortizes the patent over 10 years. Western Ranchings trial balance on December 31, 20X3, in Australian dollars is as follows:

	Debits		Credits
Cash	A$	44,100
Accounts Receivable (net)		72,000
Inventory		86,000
Plant and Equipment		240,000
Accumulated Depreciation			A$	60,000
Accounts Payable				53,800
Payable to Alamo Inc.				10,800
Interest Payable				3,000
12% Bonds Payable				100,000
Premium on Bonds				5,700
Common Stock				90,000
Retained Earnings				40,000
Sales				579,000
Cost of Goods Sold		330,000
Depreciation Expense		24,000
Operating Expenses		131,500
Interest Expense		5,700
Dividends Paid		9,000
Total	A$	942,300	A$	942,300

Additional Information:

1.	Western Ranching uses average cost for cost of goods sold. Inventory increased by A$20,000 during the year. Purchases were made uniformly during 20X3. The ending inventory was acquired at the average exchange rate for the year.
2.	Plant and equipment were acquired as follows:

Date	Cost
January 20X1		A$	180,000
January 1, 20X3			60,000

3.	Plant and equipment are depreciated using the straight-line method and a 10-year life, with no residual value.
4.	The payable to Alamo is in Australian dollars. Alamos books show a receivable from Western Ranching of $6,480.
5.	The 10-year bonds were issued on July 1, 20X3, for A$106,000. The premium is amortized on a straight-line basis. The interest is paid on April 1 and October 1.
6.	The dividends were declared and paid on April 1.
7.	Exchange rates were as follows:

	A$					$
January 20X1	1		=			0.93
August 20X1	1		=			0.88
January 1, 20X3	1		=			0.70
April 1, 20X3	1		=			0.67
July 1, 20X3	1		=			0.64
December 31, 20X3	1		=			0.60
20X3 average	1		=			0.65

Assume the U.S. dollar is the functional currency.

Required:

a.	Prepare a schedule remeasuring the December 31, 20X3, trial balance of Western Ranching from Australian dollars to U.S. dollars. (If no adjustment is needed, select 'No entry necessary'.)

b.	Prepare a schedule providing a proof of the remeasurement gain or loss. The subsidiarys net monetary liability position on January 1, 20X3, was A$80,000. (Amounts to be deducted should be indicated with a minus sign.)