Hurricane Co$,$ a U$.$S$.$ company, acquired $100$ percent of a Canadian company for $16$ million Canadian dollars on December $20,$ Year $1.$ At the date of acquisition, the exchange rate was US $$0\mathrm{.}75$ per $1$ Canadian dollar. The acquisition price is attributable to the following assets and liabilities denominated in Canadian dollars:

Hurricane Co prepares consolidated financial statements on December $31,$ Year $1.$ By that date, the Canadian dollar appreciated to US $$0\mathrm{.}78.$ Because of the year$-$end holidays, no transactions took place between the date of acquisition and the end of the year. Property, plant, and equipment is depreciated using a units$-$of$-$production method, so no depreciation is required from December $20$ to December $31.$ The Canadian subsidiary has no revenues and no expenses from December $20$ to December $31,$ and its book value is unchanged from December $20$ to December $31.$

Determine the translation adjustment to be reported on Hurricane$$s December $31,$ Year $1,$ consolidated balance sheet, assuming that the Canadian dollar is the Canadian subsidiary's functional currency. What is the economic relevance of this translation adjustment?

Determine the remeasurement gain or loss to be reported in Hurricane$$s Year $1$ consolidated income, assuming that the U$.$S$.$ dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?