Question
Can someone please help me with this type of question! Thanks!!! Rolfe Company (o U.S-based company) has a subsidiary in Nigerie where the local currency
Can someone please help me with this type of question!
Thanks!!! Rolfe Company (o U.S-based company) has a subsidiary in Nigerie where the local currency unit is the naira (NGN. On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000 10 NGN 15.450 Notes payable NGN20,100 20,100 10.050 10, 500 Comon ssee1 Land aildiag 050 Retained earnings 40, 500 NGN 50, 250 NGN50,250 The subsidiery ecquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008 During 2017, the folloing transoctions took place 2017 Feb. 1Paid B,050, 000 GN the note payable May 1 June 1 01d and for 6,050,000 loar cash ug. 1 Collected all acaounts receivable Sold entire nrent for 16,500,000 NGN on acount Oct. 1 ought inentory Eor 20. 050,000 NG amh Nov. 1 Bought land fox 3,050,O00 NGN on account Dea. 1 Declazed and paid a.050, 000 parent eash dividend to Dec . 2, 025, 0OD0 NGN The U.S dollar (S) exchange rates for 1 NGN are as follows 2008 2010 August . 2016 Decembe: 31, 2016 February 1. 2017 May 1, 2017 June , 2017 August 1, 2017 Beptember 1. 2017 October i, 2017 Tovembe: 1, 2017 December 1, 2017 Decembe: 1, 2017 Average for 2017 1-0.0047 10.0067 1.009 10.0071 1.0073 1 0.0075 1.0079 0.0081 10.0083 10.0085 10.0094 10.0084 a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 20172 b. Assuming the US$ is the subsidiary's functional currency, whst is the remessurement gain or loss determined solely for 2017? (Input all amounts as positive. Enter amounts in whole dolars.)
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