Translation and Remeasurement of Subsidiary Trial Balance

Costsave Corporation, a U.S. company, acquired Denner, a discount supermarket chain in Switzerland, on January 1, 2017. Denner is a subsidiary of Costsave, and its results are consolidated with those of Costsave in Costsave's financial statements. Denner's trial balances for January 1 and December 31, 2017, in Swiss francs (CHF) appear below.

	Dr(Cr)
(in thousands)	December 31	January 1
Cash and receivables	CHF 15,000	CHF10,000
Inventories	55,000	60,000
Plants and equipment, net	165,000	140,000
Accounts and notes payable	(120,000)	(125,000)
Common stock	(25,000)	(25,000)
Retained earnings, January 1	(60,000)	(60,000)
Dividends	20,000	--
Sales	(500,000)	--
Cost of sales	375,000	--
Operating expenses	75,000	--
Totals	CHF 0	CHF 0

Additional Information: (in thousands)

1. Included in operating expenses is depreciation expense of CHF5,000.
2. Plant and equipment of CHF30,000 was purchased for cash during 2017, when the exchange rate was $1.04. Depreciation of CHF2,000 was taken on this purchase during 2017.
3. The ending inventory was purchased during the month of December.
4. Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year.
5. Dividends were declared on December 31, 2017.
6. Exchange rates for 2017 were as follows ($/CHF):

January 1, 2017	$1.03
Average for 2017	1.06
Average for December, 2017	1.08
December 31, 2017	1.09

It is now December 31, 2017, and Denner's accounts must be converted to U.S. dollars in preparation for consolidation.

(a) Denner's functional currency is the U.S. dollar. Prepare Denner's remeasured December 31, 2017 trial balance, and a schedule showing the computation of the remeasurement gain or loss for 2017.

• Use negative signs with your Cr (credit balance) answers.
• Enter answers in thousands.

Do not use negative signs with any of your answers below. Do not use negative signs with any of your answers below. Do not use negative signs with any of your answers below. Instructions for Remeasurement Gain/Loss Schedule: 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. - Use negative signs with your Cr (credit balance) answers. - Enter answers in thousands. Instructions for Translation Gain/Loss Schedule: 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