Calculation of Translation Adjustment Net assets, 1/1 Increase in net assets: Common stock issued Sales Decrease in net assets: Dividends Salary expense Depreciation expense Miscellaneous expense Net assets, 12/31 Net assets, 12/31 at current exchange rate Translation adjustment Calculation of Remeasurement Loss Net monetary assets, 1/1 Increase in net monetary assets: Common stock issued Sales Decrease in net monetary assets: Acquired equipment Acquired land Dividends Salary expense Miscellaneous expense Net monetary assets, 12/31 Net monetary assets, 12/31 at current exchange rate Remeasurement loss As of December 31,2020 , the subsidiary reports the following trial balance: \begin{tabular}{|c|c|c|} \hline & Debits & Credits \\ \hline & R 8,000 & \\ \hline Accounts receivable. & 9,000 & \\ \hline Equipment . & 3,000 & \\ \hline Land...... & 5,000 & \\ \hline Accounts payable. & & 3,000 \\ \hline Notes payable (due 2028). & & 5,000 \\ \hline Dividends declared (6/1/20). & 4,000 & \\ \hline Sales. & & 25,000 \\ \hline Salary expense. & 5,000 & \\ \hline Depreciation expense. & 600 & \\ \hline Miscellaneous expenses. & 9,000 & \\ \hline Totals. & R43,600 & R43,600 \\ \hline \end{tabular} a. Assume that the subsidiary's functional currency is the rial (R). Prepare a trial balance for it in U.S. dollars so that 2020 consolidated financial statements can be prepared. b. Assume that the subsidiary's functional currency is the U.S. dollar. Prepare a trial balance for it in U.S. dollars so that 2020 consolidated financial statements can be prepared. 2. Kingsfield establishes a subsidiary operation in a foreign country on January 1,2020. The country's currency is the rial (R). To start this business, Kingsfield invests 10,000 rials. Of this amount, it spends 3,000 rials immediately to acquire equipment. Later, on April 1,2020, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. Kingsfield uses the U.S. dollar as its reporting currency. The U.S. dollar (\$) exchange rates for the rial for 2020 follow: Problem 10-32