Doner Company Inc. established a foreign subsidiary on January 1, Year 1. The subsidiary's financial statements in foreign currency (FC) for the year ended December 31, Year 1, appear as follows:

Balance Sheets January 1, Year 1 December 31, Year 1

Cash and receivables . . . . . . . . . . . . . . . . . . .FC 20,000 FC 85,000

Property and equipment, net . . . . . . . . . . . . .50,000 45,000

Total . . . . . . . . . . . . . . . . . . . . . . . .FC 70,000 FC 130,000

Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . .FC 15,000 FC15,000

Contributed capital . . . . . . . . . . . . . . . . . . . . 55,000 55,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . 60,000

Total . . . . . . . . . . . . . . . . . . . . . . . .FC 70,000 FC 130,000

Income Statement Year 1

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . .FC 100,000

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . (5,000)

Other expenses . . . . . . . . . . . . . . . . . . . . . . . (35,000)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .FC60,000

Revenues and expenses occur evenly throughout the year. Revenues and other expenses are realized in cash during the year.

General price indexes (GPI) and parent currency (PC) per FC exchange rates for Year 1 are as follows:

Date General Price Index Exchange Rate (per FC)

January 1, Year 1 100 PC 100

Average for Year 1 160 PC 70

December 31, Year 1 240 PC 40

Required:

a. Translate the foreign subsidiary's Year 1 foreign currency (FC) financial statements into parent currency (PC) using IFRS.

b. Remeasure the foreign subsidiary's Year 1 foreign currency (FC) financial statements into parent currency (PC) using U.S. GAAP.