Question 20 pts A U.S. company with a June 30 fiscal year-end established a subsidiary in Singapore on July 1,2020. Following is information on the activities of the subsidiary during fiscal 2021, in Singapore dollars (S$): Subsidiary Balance Sheets July 1, June 30, July 1, June 30, 2020 2021 2020 2021 Cash S$ 10,000 $$ 17,000 Liabilities S$100,000 $$ 95,000 Accounts receivable 0 8,000 Capital stock 250,000 250,000 Inventories (cost) 40,000 50,000 Retained earnings 10,000 Plant assets, net 300,000 280,000 Total $$350.000 $5855.000 Total $$350,000 $355.000 S$800,000 400,000 390,000 50,000 The following events occurred during fiscal 2021: 1. Sales (evenly through the year) 2. Inventory purchases (all for cash, evenly through the year) 3. Cost of goods sold 4. Purchase of plant assets for cash (on November 1, 2020) 5. Depreciation expense (S$60,000 on the plant assets acquired July 1, 2020, S$10,000 on the plant assets purchased November 1, 2020) 6. Other operating expenses (all for cash, evenly through the year) Exchange rates are as follows (S/SS): July 1, 2020 $0.69 November 1, 2020 0.70 March 15, 2021 0.72 June 30, 2021 0.74 Average for fiscal 2021 0.71 70,000 330,000 Required a. Calculate the translation gain or loss for fiscal 2021. b. Calculate the remeasurement gain or loss for fiscal 2021. c. Compute the translated total assets as of June 30, 2021. d. Compute the remeasured balance for June 30, 2021 plant assets, net. Question 20 pts A U.S. company with a June 30 fiscal year-end established a subsidiary in Singapore on July 1,2020. Following is information on the activities of the subsidiary during fiscal 2021, in Singapore dollars (S$): Subsidiary Balance Sheets July 1, June 30, July 1, June 30, 2020 2021 2020 2021 Cash S$ 10,000 $$ 17,000 Liabilities S$100,000 $$ 95,000 Accounts receivable 0 8,000 Capital stock 250,000 250,000 Inventories (cost) 40,000 50,000 Retained earnings 10,000 Plant assets, net 300,000 280,000 Total $$350.000 $5855.000 Total $$350,000 $355.000 S$800,000 400,000 390,000 50,000 The following events occurred during fiscal 2021: 1. Sales (evenly through the year) 2. Inventory purchases (all for cash, evenly through the year) 3. Cost of goods sold 4. Purchase of plant assets for cash (on November 1, 2020) 5. Depreciation expense (S$60,000 on the plant assets acquired July 1, 2020, S$10,000 on the plant assets purchased November 1, 2020) 6. Other operating expenses (all for cash, evenly through the year) Exchange rates are as follows (S/SS): July 1, 2020 $0.69 November 1, 2020 0.70 March 15, 2021 0.72 June 30, 2021 0.74 Average for fiscal 2021 0.71 70,000 330,000 Required a. Calculate the translation gain or loss for fiscal 2021. b. Calculate the remeasurement gain or loss for fiscal 2021. c. Compute the translated total assets as of June 30, 2021. d. Compute the remeasured balance for June 30, 2021 plant assets, net
