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On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. RoadTimes December 31, 20X1, trial balance in SFr is as follows:

	Debit		Credit
Cash	SFr	7,000
Accounts Receivable (net)		20,000
Receivable from Popular Creek		5,000
Inventory		25,000
Plant & Equipment		100,000
Accumulated Depreciation			SFr	10,000
Accounts Payable				12,000
Bonds Payable				50,000
Common Stock				60,000
Sales				150,000
Cost of Goods Sold		70,000
Depreciation Expense		10,000
Operating Expense		30,000
Dividends Paid		15,000
Total	SFr	282,000	SFr	282,000

Additional Information
1.	The receivable from Popular Creek is denominated in Swiss francs. Popular Creeks books show a $4,000 payable to RoadTime.
2.	Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1.
3.	Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full years depreciation is taken in the year of acquisition. The equipment was acquired on March 1.
4.	The dividends were declared and paid on November 1.
5.	Exchange rates were as follows:

	SFr		$
January 1	1	=	0.73
March 1	1	=	0.74
November 1	1	=	0.77
December 31	1	=	0.80
20X1 average	1	=	0.75

6.	The U.S. dollar is the functional currency for the foreign subsidiary.

Required:

a.	Prepare a proof of the remeasurement gain or loss. (Amounts to be deducted should be entered with a minus sign. Round "exchange rate" answers to 2 decimal places.)

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