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 a. below: The relevant exchange rates for the SUS value of the Australian Dollar (AUD) are as follows: BOY rate EOY rate Avg. rate Dividend rate Historical rates: Beginning inventory Land Building Equipment Historical rate (common stock and APIC) S0.78 S0.95 S0.85 S0.94 0.78 0.62 $0.63 s0.64 S0.50 For parts a. and b. below, use a negative sign with answers to indicate a reduction