Assume that our company owns a subsidiary operating in Germany. The subsidiary has adopted the Euro () as its functional currency. Following are the subsidiary's financial statements (in ) for the most recent year: Subsidiary (in Income statement Sales Cost of goods sold Gross Profit Operatingexpenses Depreciation Remeasurement gain or loss Net income 8,000,000 5,100,000 2,900,000 (1,490,000) (405,000) 1.005,000 Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings 4,615,000 1,005,000 118,000 5,502,000 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 2,050,100 2,076,000 1,866,000 4,790,900 10,783,000 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Total Liabilities & Equity 1,365,100 2,645,900 350,000 920,000 5,502,000 10,783,000 Our subsidiary also reports the following additional financial statement information: Assume that our company owns a subsidiary operating in Germany. The subsidiary has adopted the Euro () as its functional currency. Following are the subsidiary's financial statements (in ) for the most recent year: Subsidiary (in Income statement Sales Cost of goods sold Gross Profit Operatingexpenses Depreciation Remeasurement gain or loss Net income 8,000,000 5,100,000 2,900,000 (1,490,000) (405,000) 1.005,000 Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings 4,615,000 1,005,000 118,000 5,502,000 Balance sheet: Assets Cash Accounts receivable Inventory PPE, net Total Assets 2,050,100 2,076,000 1,866,000 4,790,900 10,783,000 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings Total Liabilities & Equity 1,365,100 2,645,900 350,000 920,000 5,502,000 10,783,000 Our subsidiary also reports the following additional financial statement information