Walmart Industries's IFRS financial statements for the year of 2018 are as follows:

Income Statement

Sales 295,000 $

Cost of Goods Sold (177,000)

Gross Profit 118,000

Less: Operating Expenses (68,000)

Gain on Sale 50,000

Net Income 100,000 $

Statement of Retained Earnings

Retained earnings, 1/1/18 823,000 $

Net Income 100,000

Less: Dividends (48,000)

Retained earnings, 12/31/18 875,000 $

Balance Sheet

Assets

Cash 265,000 $

Receivables 198,000

Inventory 123,000

Fixed assets (net) 696,000

Total assets 1,282,000 $

Liabilities and Equity

Liabilities 282,000 $

Common Stock 125,000

Retained earnings, 12/31/18 875,000

Total Liabilities and Equity 1,282,000 $

Additional Information

- The common stock was issued in 2004 when the exchange rate was $1.37 per Euro.

- Fixed assets were acquired in 2005 when the exchange rate was $1.19 per Euro.

- Dividends were declared on April 1.

- The sale that gave rise to the gain on the income statement occurred on Sept. 1.

- As of January 1, 2018, the Retained Earnings balance was translated as $1,094,000.

- The US dollar per Euro exchange rates for $1 for 2018 follow:

January 1 1.085 $

April 1 1.137 $

September 1 1.119 $

December 31 1.063 $

Weighted average for the year 1.107 $

- Inventory was acquired evenly throughout the year.

Required

1. Translate the foreign currency statements into U.S. dollars and calculate the translation

adjustment.

b. Remeasure the foreign currency statements into U.S. dollars and calculate the remeasurement gain or loss.