Watson Company has a subsidiary in the country of Alonza where the local currency unit is the kamel (KM). On December 31, 2014, the subsidiary has the following balance sheet:

Cash	KM	2,000	Notes payable (due 2016)	KM	18,000
Inventory		11,500	Common stock		20,000
Land		7,000	Retained earnings		10,000
Building		55,000
Accumulated depreciation		(27,500)
	KM	48,000		KM	48,000

The subsidiary acquired the inventory on August 1, 2014, and the land and buildings in 2000. It issued the common stock in 1998. During 2015, the following transactions took place:

2015
Feb. 1	Paid 6,500 KM on the note payable.
May 1	Sold entire inventory for 17,000 KM on account.
June 1	Sold land for 8,200 KM cash.
Aug. 1	Collected all accounts receivable.
Sept.1	Signed long-term note to receive 7,500 KM cash.
Oct. 1	Bought inventory for 12,000 KM cash.
Nov. 1	Bought land for 7,000 KM on account.
Dec. 1	Declared and paid 2,400 KM cash dividend to parent.
Dec. 31	Recorded depreciation for the entire year of 2,750 KM.

The exchange rates for 1 KM are as follows:

1998	1 KM	=	$	0.24
2000	1	=		0.21
August 1, 2014	1	=		0.31
December 31, 2014	1	=		0.32
February 1, 2015	1	=		0.33
May 1, 2015	1	=		0.34
June 1, 2015	1	=		0.35
August 1, 2015	1	=		0.37
September 1, 2015	1	=		0.38
October 1, 2015	1	=		0.39
November 1, 2015	1	=		0.40
December 1, 2015	1	=		0.41
December 31, 2015	1	=		0.32
Average for 2015	1	=		0.32

a.	If this is a translation, what is the translation adjustment determined solely for 2015?

b.	If this is a remeasurement, what is the remeasurement gain or loss determined solely for 2015?

1 of 2 Watson Company has a subsidiary in the country of Alonza where the local currency unit is the kamel (KM). On December 31, 2014, the subsidiary has the following balance sheet: Cash Inventory Land Building Accumulated depreciation KM 2,000 Notes payable (due 2016) 11,500 Common stock 7,000 Retained earnings 55,000 (27,500) KM 48,000 KM 18,000 20,000 10,000 KM 48,000 The subsidiary acquired the inventory on August 1, 2014, and the land and buildings in 2000. It issued the common stock in 1998. During 2015, the following transactions took place: 2015 Feb. 1 May 1 June 1 Aug. 1 Sept.1 Oct. 1 Nov. 1 Dec. 1 Dec. 31 Paid 6,500 KM on the note payable. Sold entire inventory for 17,000 KM on account. Sold land for 8,200 KM cash. Collected all accounts receivable. Signed long-term note to receive 7,500 KM cash. Bought inventory for 12,000 KM cash. Bought land for 7,000 KM on account. Declared and paid 2,400 KM cash dividend to parent. Recorded depreciation for the entire year of 2,750 KM. The exchange rates for 1 KM are as follows: 1998 2000 August 1, 2014 December 31, 2014 February 1, 2015 May 1, 2015 June 1, 2015 August 1, 2015 September 1, 2015 October 1, 2015 November 1, 2015 December 1, 2015 December 31, 2015 Average for 2015 1 KM 1 1 1 1 1 1 1 1 1 1 1 1 1 = = = = = = = = = = = = = = $ 0.24 0.21 0.31 0.32 0.33 0.34 0.35 0.37 0.38 0.39 0.40 0.41 0.32 0.32 a. If this is a translation, what is the translation adjustment determined solely for 2015? translation adjustment b. If this is a remeasurement, what is the remeasurement gain or loss determined solely for 2015? 2 of 2