On January 1, 2021, Alpine Systems, a U.S.-based company, acquired a 100 percent interest in Grant Management Consultants, located in Zurich, Switzerland. All fixed assets were on the books when the subsidiary was acquired on January 1, 2021. Retained earnings balance of the subsidiary in U.S. dollars was $8,000 on January 1, 2021.

Exchange rates are:

	Dollars per Swiss Franc	Swiss Francs per Dollar
January 1, 2021	$0.8000	SF 1.2500
December 31, 2021	$0.8300	SF 1.2048
Average for 2021	$0.8250	SF 1.2121
Dividend declaration and payment date	$0.8200	SF 1.2195

Answer question 1 through 8 for Alpine Systems, a U.S.-based company. Information and worksheets for Alpine Systems are on pages 5 and 6.

1. What is the sales revenue in U.S. dollars when the functional currency is the Swiss Franc?

A. $125,000.

B. $83,000.

C. $80,000.

D. $82,500.

2. What is depreciation expense in U.S. dollars when the functional currency is the U.S. dollar?

A. $4,125.

B. $4,000.

C. $6,250.

D. $6,061.

3. What is depreciation expense in U.S. dollars when the functional currency is the Swiss Franc?

A. $4,125.

B. $4,000.

C. $6,250.

D. $6,061.

4. What is net income in U.S. dollars when the functional currency is the Swiss Franc?

A. $58,100.

B. $57,750.

C. $84,847.

D. $56,000.

5. What are total assets in U.S. dollars when the functional currency is the Swiss Franc?

A. $141,816.

B. $96,525.

C. $97,110.

D. $94,950.

6. What are total assets in U.S. dollars when the functional currency is the U.S. dollar?

A. $94,950.

B. $97,110.

C. $93,600.

D. $96,525.

7. What is the balance of the cumulative translation adjustment at December 31 when the functional currency is the Swiss Franc?

A. A credit of $920 (positive).

B. A debit of $920 (negative).

C. A credit of $585 (positive).

D. A debit of $585(negative).

8. What is the remeasurement gain or loss when the U.S. dollar is the functional currency?

A. Remeasurement gain $1,365.

B. Remeasurement loss $1,365.

C. Remeasurement loss $1,240.

D. Remeasurement gain $335.