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Costsave Corporation, a U.S. company, acquired Denner, a discount supermarket chain in Switzerland, on January 1, 2020. Denner is a subsidiary of Costsave, and its

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Costsave Corporation, a U.S. company, acquired Denner, a discount supermarket chain in Switzerland, on January 1, 2020. Denner is a subsidiary of Costsave, and its results are consolidated with those of Costsave in Costsave's financial statements. Denner's trial balances for January 1 and December 31, 2020, in Swiss francs (CHF) appear below. Dr (Cr) (in thousands) Cash and receivables. Inventories Plant and equipment, net. Accounts and notes payable Common stock. Retained earings, January 1. Dividends. Sales. Cost of sales. Operating expenses Totals.. December 31 CHF 30,000 55,000 175,000 (120,000) (30,000) (80,000) 20,000 (500,000) 375,000 75.000 CHF 0 January 1 CHF 25,000 60,000 150,000 (125,000) (30,000) (80,000) CHF 0 Additional information: 1. Included in operating expenses is depreciation expense of CHF5,000. 2. Plant and equipment of CHF30,000 was purchased for cash during 2020, when the exchange rate was $1.04. Depreciation of CHF2,000 was taken on this purchase during 2020. 3. The ending inventory was purchased during the month of December. 4. Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year. 5. Dividends were declared on December 31, 2020. 6. Exchange rates for 2020 were as follows ($/CHF): January 1, 2020 Average for 2020 Average for December 2020 December 31, 2020 It is now December 31, 2020, and Denner's accounts must be converted to U.S. dollars in preparation for consolidation Required 1. Denner's functional currency is the U.S. dollar. Prepare Denner's remeasured December 31, 2020 trial balance, and a schedule showing the computation of the remeasurement gain or loss for 2020. 2 Denner's functional currency is the Swiss franc. Prepare Denner's translated December 31, 2020 trial balance, and a schedule showing the computation of the translation gain or loss for 2020 $1.03 1.06 1.08 1.09

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