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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

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 45,000 CHF30,000
Inventories 55,000 65,000
Plants and equipment, net 180,000 160,000
Accounts and notes payable (120,000) (125,000)
Common stock (40,000) (40,000)
Retained earnings, January 1 (90,000) (90,000)
Dividends 20,000 --
Sales (500,000) --
Cost of sales 375,000 --
Operating expenses 75,000 --
Totals CHF 0 CHF 0

Additional Information: (in thousands)

Included in operating expenses is depreciation expense of CHF5,000.

Plant and equipment of CHF25,000 was purchased for cash during 2017, when the exchange rate was $1.04. Depreciation of CHF2,000 was taken on this purchase during 2017.

The ending inventory was purchased during the month of December.

Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year.

Dividends were declared on December 31, 2017.

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.

Remeasured Trial Balance, December 31 2017
CHF Dr(Cr) $/CHF $ Dr(Cr)
Cash, receivables CHF45,000 Answer

$Answer

Inventories 55,000 Answer

Answer

Plant and equipment, net 180,000 (1) below Answer

Accounts and notes payable (120,000) Answer

$Answer

Common stock (40,000) Answer

Answer

Retained earnings, beginning (90,000) Answer

Answer

Dividends 20,000 Answer

Answer

Sales (500,000) Answer

Answer

Cost of sales 375,000 (2) below Answer

Operating expenses 75,000 (3) below Answer

Remeasurement (gain) or loss -- (4) below Answer

CHF 0 $Answer

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