Translation and Remeasurement of Inventory and Cost of Sales Shopwell is a U.K. grocery chain that is a subsidiary of Premium Products, a U.S. company. Premium's fiscal year ends January 31. On February 1, 2015, Shopwell's inventory balance consisted of pound100,000 purchased when the exchange rate was $1.60/pound, and pound300,000 purchased when the exchange rate was $1.62/pound. Shopwell made purchases of pound5,000,000 evenly throughout fiscal 2016, and its inventory on January 31, 2016, consisted of pound350,000 purchased when the exchange rate was $1.67/pound. Shopwel's sales of inventory occurred relatively evenly throughout fiscal 2016. The average exchange rate for fiscal 2016 was $1.64/pound, and the January 31, 2016, exchange rate was $1.70/pound. Required a. Assume that Shopwell's functional currency is the pound. Calculate Shopwell's translated ending inventory at January 31, 2016, and its translated cost of sales for fiscal 2016 b. Now assume that Shopwell's functional currency is the U.S. dollar. Calculate Shopwell's remeasured ending inventory at January 31, 2016, and its remeasured cost of sales for fiscal 2016. Translation and Remeasurement of Depreciable Assets Asda is a U.K. supermarket chain that is a subsidiary of Wal-Mart Inc., a U.S. company. Wal-Mart's fiscal year ends January 31. On February 1, 2015, Asda reports facilities with original cost of pound30 million and accumulated depreciation of pound15 million in its noncurrent assets, as follows: Buildings acquired at a cost of pound25 million when the exchange rate was $1.50/pound, with accumulated depreciation of pound12 million. The buildings are being depreciated on a straight-line basis over 25 years Equipment acquired at a cost of pound5 million when the exchange rate was $1.40/pound, with accumulated depreciation of pound3 million. The equipment is being depreciated on a straight-line basis over 10 years Additional exchange rates February 1, 2015 $1.61 Average for fiscal 2016 1.64 January 31, 2016 1.70 Asda still holds these facilities at January 31, 2016. Required a. Assume that Asda's functional currency is the pound. Calculate Asda's translated facilities, at cost and related accumulated depreciation, at January 31, 2016, and its translated depreciation expense for fiscal 2016. b. Now assume that Asda's functional currency is the U.S. dollar. Calculate Asda's remeasured facilities, at cost, and related accumulated depreciation, at January 31, 2016, and its remeasured depreciation expense for fiscal 2016