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Problem #4 (15 points) On January 1, 2017, a company trial bala enapore company was acquired by a u.s. company. The Singapore subsidiany December 31,
Problem #4 (15 points) On January 1, 2017, a company trial bala enapore company was acquired by a u.s. company. The Singapore subsidiany December 31, 2017 Dr (Cr) and end of 2017 appear below, in Singapore dollars (SS) January 1, 2017 Dr S$ 1,500,000 7,500,000 14,500,000 s$ 400,000 8,000,000 15,000,000 Cash and receivables Inventories Fixed assets, net (18,000,000) Liabilities (18,400 Capital stock Dividendsbeginning 3,000000 3,000.000) 300,000 (3,000,000 Sales (12,000,000) Cost of goods sold Depreciation expense Other operating 8,000,000 1,000,00 Sales, inventory purchases and other operating expenses S$500,000 were purchased in 2017, when the exchange rate was occurred evenly during 2017. Fixed assets of when the exchange rate was $0.725/s$. Other exchange rates (U.S. dollars/S$) are as follows: January 1, 2017 Average for 2017 December 31, 2017 $0.75 0.73 0.71 a. The subsidiary's functional currency is the Singapore dollar. Calculate the translation gain or loss for 2017. Specify whether it is a gain or loss. b. The subsidiary's functional currency is the U.S. dollar. Calculate the remeasurement gain or loss for 2017. Specify whether it is a gain or loss
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