On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense. Operating Expense Dividends Paid Total Additional Information Debit SFr 7,000 Credit 20,000 5,000 25,000 100,000 SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 SFF282,000 SFP282,000 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 payable to SunTime. 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1 3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year's depreciation is taken in the year of acquisition. The equipment was acquired on March 1. 4. The dividends were declared and paid on November 1. 5. Exchange rates were as follows: 5Fr $ Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 payable to SunTime. 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year's depreciation is taken in the year of acquisition. The equipment was acquired on March 1. 4. The dividends were declared and paid on November 1. 5. Exchange rates were as follows: January 1 March 1 SFr $ 1-0.73 1-8.74 November 1 1-0.77 December 31 1-0.80 20X1 average 1-0.75 6. The U.S. dollar is the functional currency for the foreign subsidiary. Required: a. Prepare a proof of the remeasurement gain or loss. (Amounts to be deducted should be entered with a minus sign. Round "exchange rate" answers to 2 decimal places.) POPULAR CREEK CORPORATION AND SUBSIDIARY Proof of Remeasurement Loss Year Ended Dec. 31, 20X1 Schedule 2 Analysis of Changes in Monetary Accounts Exchanne Answer is complete but not entirely correct. POPULAR CREEK CORNRATION AND SUBSIDIARY Proof of Remeasurement Loss Year Ended Doc. 31, 20X1 Schedule 2 Analysis of Changes in Monetary Accounts Exposed net monetary asset Position - January 1 Adjustments for changes in the net monetary position during the year. Increases From operations Sales From other sources Decreases From operations Purchases Operating expenses in cash From dividends From purchase of plant and equipment Net monetary position prior to remeasurement at year-end rates Exposed net monetary liability Position - December 31 Remeasurement loss SFr Exchange Rate SFr 20,000 S 0.73 U.S. Dollars $ 14,600 150,000 00 0.75 112,500 00 15,000 0.75 11,250 30,000 0.75 22.500 15,000 0.77 11,550 100,000 0.74 74.000 $ 246,400 SFr 330.000 S 0.80 264,000 $ 17,600