Translation and Remeasurement Gain and Loss

Costco Canada Holdings is a Canadian subsidiary of Costco Wholesale Corporation, a U.S. company. Assume that the following data relate to Costco Canadas activities for 2020 (in millions).

Net monetary assets (liabilities), January 1, 2020	C$ 700
Acquisition of plant assets for debt, February 15, 2020	1,000
Purchase of inventory made evenly during 2020	3,500
Collection of receivables outstanding at January 1, 2020	2,700
Sales made evenly during 2020	6,000
Cost of goods sold	3,300
Depreciation of assets acquired when the exchange rate was $0.85/C$	400
Current operating expenses (excluding depreciation and amortization),incurred evenly during 2020	1,200
Refinancing or "rollover" of commercial paper	800

Exchange rates ($/C$) during 2020 are:

January 1, 2020	$0.80		Average for 2020	$0.75
February 15, 2020	0.78		December 31, 2020	0.72

(a) Assuming Costco Canadas functional currency is the U.S. dollar, prepare a schedule to compute the remeasurement gain or loss for 2020.

Instructions:

1. Use negative signs with answers to indicate a negative exposed position balance.
2. Use negative signs with answers to indicate an amount that reduces the exposed position balance.
3. Using the drop-down menu, select the appropriate answer to indicate a remeasurement gain or remeasurement loss.
4. Do not use a negative sign with your remeasurement gain or remeasurement loss answer.

*Drop down entry title options include remeasurement gain or remeasurement loss.

(b) Assuming Costco Canadas functional currency is the Canadian dollar, prepare a schedule to compute the translation gain or loss for 2020. Assume net assets on January 1, 2020, amounted to C$1,200 million.

Instructions:

1. Use negative signs with answers to indicate a negative exposed position balance.
2. Use negative signs with answers to indicate an amount that reduces the exposed position balance.
3. Using the drop-down menu, select the appropriate answer to indicate a translation gain or translation loss.
4. Do not use a negative sign with your translation gain or translation loss answer.

*Drop down entry title options include translation loss or translation gain.

Please show all work. Thank you!!!!

Amount (C$) $/C$ Amount ($) (in millions) Exposed position, 1/1/20 Acquisition of plant assets for debt Purchase of inventory Sales Operating expenses Exposed position, 12/31/20 $/C$ Amount ($) (in millions) Exposed position, 1/1/20 Net income in 2020 Amount (C$) $ Exposed position, 12/31/20 $ Amount (C$) $/C$ Amount ($) (in millions) Exposed position, 1/1/20 Acquisition of plant assets for debt Purchase of inventory Sales Operating expenses Exposed position, 12/31/20 $/C$ Amount ($) (in millions) Exposed position, 1/1/20 Net income in 2020 Amount (C$) $ Exposed position, 12/31/20 $