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The 2021 beginning and ending trial balances of a German subsidiary of a U.S. company appear below, in euros. 1-Jan 31-Dec Dr(Cr) Dr (Cr) Cash

The 2021 beginning and ending trial balances of a German subsidiary of a U.S. company appear below, in euros.

1-Jan 31-Dec
Dr(Cr) Dr (Cr)
Cash and receivables 37,200 46,500
Inventories at cost 93,000 102,300
Investments, at market 69,750 88,350
Plant and equipment, net 465,000 520,800
Intangibles, net 23,250 25,110
Accounts Payable (139,500) (176,700)
Unearned Revenue (74,400) (60,450)
Notes Payable (186,000) (209,250)
Deferred Tax Liabilities (65,100) (76,260)
Capital stock (46,500) (46,500)
Retained earnings, January 1 (176,700) (176,700)
Dividends 55,800
Sales (1,302,000)
Cost of goods sold 883,500
Operating expenses _______ 325,500
Total 0 0

Exchange rates ($/) are:

January 1, 2021 $1.13

Average for 2021 1.17

December 31, 2021 1.19

Additional information:

1. Dividends were declared on November 1, 2021, when the exchange rate was $1.165.

2. Sales, inventory purchases, and out-of-pocket operating expenses were incurred evenly during the year.

3. Plant and equipment on hand at the beginning of the year was purchased when the exchange rate was $1.14/. Equipment of 80,000 was acquired during 2021, when the exchange rate was $1.155.

4. Depreciation of 20,000 is included in operating expenses. Of that amount, 4,000 relates to plant and equipment acquired during 2021.

Required:

a. Assume the subsidiarys functional currency is the U.S. dollar. Compute the remeasurement gain or loss for 2021. Also, prepare a schedule to show how remeasuremnent gain/loss is calculated.

Dr (Cr) Rate U.S. $
Cash and receivables 46,500
Inventories at cost 102,300
Investments, at market 88,350
Plant and equipment, net 520,800
Intangibles, net 25,110
Accounts Payable (176,700)
Unearned Revenue (60,450)
Notes Payable (209,250)
Deferred Tax Liabilities (76,260)
Capital stock (46,500)
Retained earnings, January 1 (176,700)
Dividends 55,800
Sales (1,302,000)
Cost of goods sold 883,500
Operating expenses 325,500
Remeasurement (gain)/loss
Total 0

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