P7.2 Existing Subsidiary- Remeasurement

Pennymarkets Corporations, a U.S firm, acquired Super Valu, on January 1, 2016. SuperValu is a Swedish company that has been in existence for several years and whose functional currency is the U.S. dollar. Comparative account balances for January 1 and December 31, 2016, appear below, measured in krona (kr), the Swedish currency.

Account Balances	January 1	December 31
Cash	kr 175,000	kr 240,0000
Accounts Receivable, net	400,000	360,000
Plant & Equipment, net	2,320,000	2,000,000
Accounts Payable	(535,000)	(200,000)
Notes Payable	(800,000)	(600,000)
Capital Stock	(400,000)	(400,000)
Retained Earnings	(1,160,000)	(1,160,000)
Sales	----	(1,200,000)
Depreciation Expense	----	320,000
Other Expenses	----	640,000
Totals	kr 0	kr 0

Exchanges rates in 2016 were as follow:

Date	$/kr
January 1, 2016	$0.13
Average for 2016	$0.14
December 31, 2016	$0.16

Remeasure SuperValu's 2016 ending trial balance into U.S. dollars. Include a schedule calculating the 2016 remeasurement gain or loss, appearing in 2016 income.