FOR Assume that your company owns a subsidiary operating in Canada. The subsidiary has adopted the Canadian Dollar (CAD) as its functional currency. Your parent company operates this subsidiary like a division or a branch office, making all of its operating decisions, including pricing of its products. You conclude, therefore, that the functional currency of this subsidiary in the US and that is financial statements must be remeasured using the temporal method prior to consolidation. The subsidiary's financal statements on CAD) for the most recent year follow in portabelow The relevant exchange rates for the sus value of the Canadian Dollar (CAD) are as follow SO 51.05 Ave Tate 10 Dividende 104 Historica Becheving inventory 10.95 Land 50.70 Building son Equipment SO Historical a common stock and APC) 10.50 For parts and b. below, use a negative sign with answers to indicate a reduction a Remeasure the subsidiary's income statement statement of retained earnings, and balance sheet into us using the temporal method for the current year costume that the HOY Retained Earnings is $1.916,925). Round all answers in the "in US Dollars column to the nearest dollar Reme rement in CADI Rate US Dollars Senty 11.117.500 ch 2010 Tetry 0.000 Costi od 12.700.000 Land DO ouding 1.000 Accum deprec-ban 0.000 Hovi 1.200.000 Am 100.000 Nort, and PPD 400 $90,000 120,000 $210,000 Depreciation expense building Depreciation expense-equipment Depreciation expense Income statement: Sales Cost of goods sold Gross profit Operating expenses Depreciation $4,500,000 (2,700,000) 1,800,000 (960,000) (210,000) $630,000 Net income Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings Balance sheet: $2,362,500 630,000 (63,000) $2,929,500 Assets Cash $1,280,700 1,044,000 1,341,000 2,480,400 $6,146,100 $ Accounts receivable Inventory Property, plant, and equipment (PPE), net Total assets Liabilities and stockholders' equity Current liabilities Long-term liabilities Common stock APIC Retained earning Total abilities and equity $763,200 1,778,400 300.000 375.000 21929.500 56,146 100 $ b. A Compute the remeasurement gain or loss directly assuming BOY net monetary assets of (770,400), a net monetary liability Round all answers to the nearest dollar. Change in net monetary assets: Chg net monetary assets x (EOY - Aug exchange rate) $