Remeasurement of financial statements Assume that your company owns a subsidiary operating in Australia. The subsidiary has adopted the Australian Dollar (AUD) as its functional currency. Your parent company operates this subsidiary like a division or a branch office, making all of its operating decisions, including pricing of its products. You conclude, therefore, that the functional currency of this subsidiary is the $US and that its financial statements must be remeasured using the temporal method prior to consolidation. The subsidiary's financial statements (in AUD) for the most recent year follow in part a. below: The relevant exchange rates for the $US value of the Australian Dollar (AUD) are as follows: BOY rate $0.78 EOY rate $0.95 Avg. rate $0.85 Dividend rate $0.94 Historical rates: Beginning inventory $0.78 Land $0.62 Building $0.63 Equipment $0.64 Historical rate (common stock and APIC) $0.50 For parts a. and b. below, use a negative sign with answers to indicate a reduction. b. A Compute the remeasurement gain or loss directly assuming BOY net monetary assets of (1,540,800), a net monetary liability. Round answers to the nearest dollar. $ Change in net monetary assets: BOY net monetary assets x (EOY - BOY exchange rates) - Chg net monetary assets x (EOY - Avg exchange rate) Dividends x (EOY - Dividend exchange rate) Remeasurement loss Oo oo - $