Hamilton Inc. started 2018 with the following balance sheet in the local currency unit (LCU):

Assets Liabilities & Equity

Cash 30,000 LCU Liabilities 0 LCU

Land 70,000 LCU Owners Capital 100,000 LCU

Total Assets 100,000 LCU Total Liabilities & Equity 100,000 LCU

The land was acquired on February 1, 2013.

The following transactions occurred in 2018:

• On June 5, Hamilton Inc. rendered services to a customer for 50,000 LCU for cash.

• On November 1, the company incurred a 20,000 LCU operating expense paid in cash.

Currency exchange rates for 1 LCU were as follows:

February 1, 2013	1 LCU = $0.24
January 1, 2018	1 LCU = $0.25
June 5, 2018	1 LCU = $0.26
November 1, 2018	1 LCU = $0.27
Average for 2018	1 LCU = $0.28
December 31, 2018	1 LCU = $0.29

Required:

A. Assume that Hamilton Inc. is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the LCU is the subsidiarys functional currency.

1. What is the translation adjustment for this subsidiary for the year 2018?

2. On which financial statement is the translation adjustment?

B. Assume that Hamilton Inc. is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the U.S. Dollar is the subsidiaries functional currency.

1. What is the remeasurement gain or loss for 2018?

2. On which financial statement is the remeasurement gain or loss?

C. Assume that Hamilton Inc. is a foreign subsidiary of a U.S. multinational company. On the December 31, 2018 balance sheet, what is the translated value of the Land account?

D. Assume that Hamilton Inc. is a foreign subsidiary of a U.S. multinational company. On the December 31, 2018 balance sheet, what is the remeasured value of the Land account?