Check my work 2 25 points 8 03:24:50 On January 1, 20X1. Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFI) 60,000 SunTime's December 31, 20x1, trial balance in SFr is as follows Debit Credit Cash SF 7,000 Accounts Receivable (net) 20,000 Receivable from Popular Creek 5,800 Inventory 25,000 Plant & Equipment 100,000 Accumulated Depreciation SFr 10,080 Accounts Payable 12,000 Bonds Payable 50,000 Common Stock 60,000 Sales 150,000 Cost of Goods sold 70,000 Depreciation Expense 10,000 Operating Expense 38,000 Dividends Paid 15,eee Total SFr282,000 SFr282,800 look Print References Additional Information Check my work 2 Additional Information 25 points 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 payable to Suntime 2. Purchases of inventory goods are made evenly during the year Items in the ending inventory were purchased November 1 3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year's depreciation is taken in the year of acquisition The equipment was acquired on March 1 4 The dividends were declared and paid on November 1. 5. Exchange rates were as follows: 8 022417 ok January 1 March 1 November 1 December 31 2ex1 average Sfr 5 1.0.73 18.74 10.77 10.80 1-0.75 References 6. The US dollar is the functional currency for the foreign subsidiary Required: a. Prepare a proof of the remeasurement gain or loss. (Amounts to be deducted should be entered with a minus sign. Round "exchange rate" answers to 2 decimal places.) 2 Required: a Prepare a proof of the remeasurement gain or loss. (Amounts to be deducted should be entered with a minus sign. Round "exchange rate" answers to 2 decimal places.) 25 points 8 03:23:20 eBook Print References POPULAR CREEK CORPORATION AND SUBSIDIARY Proof of Remeasurement Loss Year Ended Dec 31, 20X1 Schedule 2 Analysis of Changes in Monetary Accounts SET Exchange Rate U.S. Dollars Exposed net monetary asset Position - January 1 SFri 10.000 s 0.73 $ 7,300 Adjustments for changes in the net monetary position during the year Increases From operations Sales 150,000 0.75 112 500 From other sources 0.73 Decreases From operations Purchases Operating expenses in cash From dividends From purchase of plant and equipment Net monetary position prior to remeasurement at year-end rates $ 119,800 Exposed net monetary liability Position December 31 SEO 160,000 5 (119 8001