The following is the 1/1/16 balance sheet of a Japanese foreign subsidiary of Parent Company. Tokyo Company Balance Sheet 1/1/16 Cash Y 10,000 Inventory (#5,000 @ Y10) Y 50,000 Building (20 year life) Y 100,000 Patent (5 year life) Y 40,000 Total assets Y 200,000 Contributed capital Y 200,000 Tokyo Company entered into the following transactions during 2016. 1. Sold #2,000 units of inventory for Y 25.00 per unit 2. Purchased #2,000 units of inventory for Y 12.00 per unit 3. Paid Y 6,000 for operating expenses 4. Incurred Y 3,000 of operating expenses on account 5. At 12/31 recorded depreciation on building of Y 5,000 6. At 12/31 recorded amortization on patent of Y 8,000 The following are the journal entries recorded by Tokyo Company for the above transactions. 1. Cash 50,000

Sales 50,000

Cost of goods sold 20,000 Inventory 20,000 2. Inventory 12,000 Cash 12,000 3. Operating expenses 6,000 Cash 6,000 4. Accounts payable 3,000 Operating expenses 3,000 5. Depreciation expense 5,000 Building 5,000 6. Amortization expense 8,000 Patent 8,000 Now the 2016 Income Statement and 12/31/16 balance sheet for Tokyo Company will be as follows Tokyo Company Income statement FTYE 12/31/16 Sales Y 50,000 Cost of good sold (Y 20,000) Operating expenses (Y 9,000) Depreciation expense (Y 5,000) Amortization expense (Y 8,000) Net income Y 8,000 Tokyo Company Balance sheet 12/3/16 Assets Cash Y 42,000

Inventory (3,000 @ Y 10.00) Y 30,000

Inventory (1,000 @ Y 12.00) Y 12,000

Building Y 95,000

Patent Y 32,000

Total Assets Y 211,000

Liabilities & Stockholders equity

Accounts Payable Y 3,000

Contributed Capital Y 200,000

Retained Earnings Y 8,000

Liabilities & Stockholders Equity Y 211,000

Exchange Rates

	1/1/2016	2016 Average	12/31/2016
$ to Yen	1.10	1.30	1.50

1.) Calculate Remeasurement Gain or loss

2.) Remeasure income statement and balance sheet from yen to dollars

3.) Calculate translation gain or loss

4.) Translate income statement and balance sheet from yen to dollars