Remeasurement of financial statements Assume that your company owns a subsidiary operating in Canada. The subsidiary has adopted the Canadian Dollar (CAD) 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. Following are the subsidiary's financial statements (in CAD) for the most recent year: The relevant exchange rates for the $US value of the Canadian Dollar (CAD) are as follows: $0.95 $1.05 $0.98 $1.04 BOY rate EOY rate Avg. rate Dividend rate Historical rates: Beginning inventory Land Building Equipment Historical rate (common stock and APIC) $0.95 $0.70 $0.72 $0.73 $0.50 For parts a. and b. below, use a negative sign with answers to indicate a reduction. a. Remeasure the subsidiary's income statement, statement of retained earnings, and balance sheet into $US using the temporal method for the current year (assume that the BOY Retained Earnings is $5,750,775). Round all answers in the "In US Dollars" column to the nearest dollar Remeasurement of financial statements Assume that your company owns a subsidiary operating in Canada. The subsidiary has adopted the Canadian Dollar (CAD) 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. Following are the subsidiary's financial statements (in CAD) for the most recent year: The relevant exchange rates for the $US value of the Canadian Dollar (CAD) are as follows: $0.95 $1.05 $0.98 $1.04 BOY rate EOY rate Avg. rate Dividend rate Historical rates: Beginning inventory Land Building Equipment Historical rate (common stock and APIC) $0.95 $0.70 $0.72 $0.73 $0.50 For parts a. and b. below, use a negative sign with answers to indicate a reduction. a. Remeasure the subsidiary's income statement, statement of retained earnings, and balance sheet into $US using the temporal method for the current year (assume that the BOY Retained Earnings is $5,750,775). Round all answers in the "In US Dollars" column to the nearest dollar