Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]):

Cash	NGN	16,740		Notes payable	NGN	20,280
Inventory		11,400		Common stock		21,800
Land		4,140		Retained earnings		10,900
Building		41,400
Accumulated depreciation		(20,700	)
	NGN	52,980			NGN	52,980

The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place:

2020
Feb.	1		Paid 8,140,000 NGN on the note payable.
May	1		Sold entire inventory for 17,400,000 NGN on account.
June	1		Sold land for 6,140,000 NGN cash.
Aug.	1		Collected all accounts receivable.
Sept.	1		Signed long-term note to receive 8,140,000 NGN cash.
Oct.	1		Bought inventory for 20,140,000 NGN cash.
Nov.	1		Bought land for 3,140,000 NGN on account.
Dec.	1		Declared and paid 3,140,000 NGN cash dividend to parent.
Dec.	31		Recorded depreciation for the entire year of 2,070,000 NGN.

The U.S dollar ($) exchange rates for 1 NGN are as follows:

2011	NGN 1	=	$	0.0062
2013	1	=		0.0056
August 1, 2019	1	=		0.0076
December 31, 2019	1	=		0.0078
February 1, 2020	1	=		0.0080
May 1, 2020	1	=		0.0082
June 1, 2020	1	=		0.0084
August 1, 2020	1	=		0.0088
September 1, 2020	1	=		0.0090
October 1, 2020	1	=		0.0092
November 1, 2020	1	=		0.0094
December 1, 2020	1	=		0.0096
December 31, 2020	1	=		0.0112
Average for 2020	1	=		0.0102

1. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2020?

2. Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2020?

(Input all amounts as positive. Enter amounts in whole dollars.)

On December 18, 2020, Stephanie Corporation acquired 100 percent of a Swiss company for 4.017 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2020, the book and fair values of the subsidiary's assets and liabilities were as follows: CHF Cash Inventory Property, plant, and equipment Notes payable 817,000 1,317,000 4,017, 000 (2, 134, 000) Stephanie prepares consolidated financial statements on December 31, 2020. By that date, the Swiss franc has appreciated to $1.10 = CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation. a. Determine the translation adjustment to be reported on Stephanie's December 31, 2020, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary's functional currency. What is the economic relevance of this translation adjustment? b. Determine the remeasurement gain or loss to be reported in Stephanie's 2020 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss? a. Translation adjustment b