On January 1, 2023, Perfect Corporation (a U.S. company) paid Euro 300,000 to acquire all of the common stock of Snow Company, a German enterprise. There was no revaluation for this acquisition. During 2023, Snow purchased Euro 200,000 of inventories. Ending inventory items (FIFO cost) were purchased when the exchange was Euro 1 = US$1.22. Snows equipment was purchased in 2015. Merchandise purchases, sales and other expenses occurred evenly over the year. Snow declared and paid dividends of Euro 30,000 on December 17, 2023.

Exchange rates were as follows:

The exchange rate on January 1, 2023, was Euro 1 = US$1.20

The exchange rate on May 1, 2023, was Euro 1 = US$1.25

The exchange rate on December 17, 2023, was Euro 1 = US$1.18

The exchange rate on December 31, 2023, was Euro 1 = US$1.23

Average exchange rate for 2023 was Euro 1 = US$1.21

2.The functional currency of Snow was the US dollar.

Remeasurement/translation of financial statements to U.S. Dollars, for the year ended December 31, 2023

Snow Company (German subsidiary)	Euros	Exchange rate Euro 1 =	U.S. Dollars
Income Statement
Net sales	400,000	US$
Cost of goods sold	220,000	Calculation
Depreciation expense	10,000	US$
Other expenses	50,000	US$
Remeasurement loss		Calculation
Net income	120,000
Statement of Retained Earnings
Retained earnings, 1/1/23	20,000	US$
+ Net income	120,000	From I/S
Dividends declared	30,000	US$
Retained earnings, 12/31/23	110,000

Balance Sheet	1/1/23	12/31/23
Cash	220,000	330,000	US$
Inventories (at FIFO cost)	50,000	30,000	US$
Equipment (net)	80,000	70,000	US$
Total	350,000	430,000
Accounts payable	30,000	20,000	US$
Common stock	300,000	300,000	US$
Retained earnings	20,000	110,000	From above
Total	350,000	430,000

(a) Determine the remeasurement gain or loss/translation adjustment for 2023 by analyzing changes in exposed positions. You must show your calculations to receive credit.

(b) Complete the above table for the remeasurement/translation of Snows financial statement into U.S. dollars.