Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's) Cash Inventory Land Building Accumulated depreciation Notes payable Common stock NGN 20, 28e 21,800 1e,900 NGN 16,740 11,480 4,140Retained earnings 41,400 20,700 NGN 52,980 NGN 52, 980 The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place: The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place 2017 Feb. 1 May 1 June 1 Aug. 1 Sept.1 Oct. 1 Nov. 1 Dec.1 Dec. 31 Paid 8,140,000 NGN on the note payable Sold entire inventory for 17,40e,ee0 NGN on account. Sold land for 6,140,00e NGN cash Collected all accounts receivable. Signed long-term note to receive 8,140,ee0 NGN cash. Bought inventory for 20,140,000 NGN cash. Bought land for 3,140,000 NGN on account. Declared and paid 3,140,e00 NGN cash dividend to parent. Recorded depreciation for the entire year of 2,e70,800 NGN The U.S dollar ($) exchange rates for 1 NGN are as follows: 2008 201e August 1, 2016 December 31, 2016 February 1, 2017 0.0056 e.878 0.0e80 May 1, 2017 June 1, 2017 August 1, 2017 September 1, 2017 October 1, 2017 . 0084 0.0888 November 1, 2017 December 1, 2017 December 31, 217 Average for 2017 0.0096 0.0112 a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017? b. Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017? (Input all amounts as positive. Enter amounts in whole dollars.) a. Positive b. Remeasurement gain translation adjustment Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's) Cash Inventory Land Building Accumulated depreciation Notes payable Common stock NGN 20, 28e 21,800 1e,900 NGN 16,740 11,480 4,140Retained earnings 41,400 20,700 NGN 52,980 NGN 52, 980 The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place: The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008. During 2017, the following transactions took place 2017 Feb. 1 May 1 June 1 Aug. 1 Sept.1 Oct. 1 Nov. 1 Dec.1 Dec. 31 Paid 8,140,000 NGN on the note payable Sold entire inventory for 17,40e,ee0 NGN on account. Sold land for 6,140,00e NGN cash Collected all accounts receivable. Signed long-term note to receive 8,140,ee0 NGN cash. Bought inventory for 20,140,000 NGN cash. Bought land for 3,140,000 NGN on account. Declared and paid 3,140,e00 NGN cash dividend to parent. Recorded depreciation for the entire year of 2,e70,800 NGN The U.S dollar ($) exchange rates for 1 NGN are as follows: 2008 201e August 1, 2016 December 31, 2016 February 1, 2017 0.0056 e.878 0.0e80 May 1, 2017 June 1, 2017 August 1, 2017 September 1, 2017 October 1, 2017 . 0084 0.0888 November 1, 2017 December 1, 2017 December 31, 217 Average for 2017 0.0096 0.0112 a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017? b. Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017? (Input all amounts as positive. Enter amounts in whole dollars.) a. Positive b. Remeasurement gain translation adjustment
