Change from Remeasurement to Translation

Oliver Corporation decided on January 1, 2023, that its Canadian subsidiarys functional currency is the Canadian dollar rather than the U.S. dollar. On that date, the net assets of its Canadian subsidiary amounted to C$20,000,000 and to $11,000,000 when remeasured; the exchange rate was $0.75/C$. During 2023, the Canadian subsidiary reported net income of C$2,500,000 and declared and paid dividends of C$1,000,000. No other changes in owners equity occurred.

Required

Calculate the translation gain or loss for 2023, and the cumulative translation gain or loss at December 31, 2023. Relevant exchange rates were $0.78/C$ (average); $0.77/C$ (dividend declaration date); $0.79/C$ (December 31, 2023).

Instructions for Translation Gain or Loss table:

Use negative signs with answers to indicate a negative exposed position balance.

Use negative signs with answers to indicate an amount that reduces the exposed position balance.

Using the drop-down menu, select the appropriate answer to indicate a translation gain or loss and a cumulative translation gain or loss.

Do not use a negative sign with your translation gain or loss and cumulative gain or loss answers.

Enter answers using all zeros (do not abbreviate to millions or thousands).

		C$	$/C$	$
Exposed position, beginning		Answer	Answer	Answer
Net income		Answer	Answer	Answer
Dividends		Answer	Answer	Answer
				Answer
Exposed position, ending		Answer	Answer	Answer
AnswerTranslation gainTranslation loss				Answer
AnswerCumulative translation gainCumulative translation loss				Answer