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Business, 27.04.2021 15:10 vandarughb2875

Rolfe Company (a U. S.-based company) has a subsidiary in Nigeria, where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]): Cash NGN 16,000 Notes payable NGN 20,000
Inventory 10,000 Common stock 20,000
Land 4,000 Retained earnings 10,000
Building 40,000 Accumulated
depreciation (20,000)
NGN 50,000 NGN 50,000
The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place:
2020
Feb. 1 Paid 8,000,000 NGN on the note payable.
May 1 Sold entire inventory for 16,000,000 NGN on account.
June 1 Sold land for 6,000,000 NGN cash.
Aug. 1 Collected all accounts receivable.
Sept. 1 Signed long-term note to receive 8,000,000 NGN cash.
Oct. 1 Bought inventory for 20,000,000 NGN cash.
Nov. 1 Bought land for 3,000,000 NGN on account.
Dec. 1 Declared and paid 3,000,000 NGN cash dividend to parent.
Dec. 31 Recorded depreciation for the entire year of 2.
The U. S dollar ($) exchange rates for 1 NGN are as follows:
2008 NGN 1 = $0.0048
2010 1 = 0.0042
August 1, 2016 1 = 0.0062
December 31, 2016 1 = 0.0064
February 1, 2017 1 = 0.0066
May 1, 2017 1 = 0.0068
June 1, 2017 1 = 0.0070
August 1, 2017 1 = 0.0074
September 1, 2017 1 = 0.0076
October 1, 2017 1 = 0.0078
November 1, 2017 1 = 0.0080
December 1, 2017 1 = 0.0082
December 31, 2017 1 = 0.0084
Average for 2017 1 = 0.0074
1. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2017?
2. Assuming the U. S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2017?

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