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On January 1,2021, Mikell acquired a foreign subsidiary whose local currency is the stickle. On...

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Accounting

On January 1,2021, Mikell acquired a foreign subsidiary whose local currency is the stickle. On
January 1,2021, Mikell issued common stock for 500,000. On July 14,2021, Mikell sold
equipment for 70,000(a loss of 40,000). On October 1,2021 Mikell paid dividends of
60,000. Mikells operating revenues and expenses for 2021 were 800,000 and 650,000,
respectively and were earned evenly throughout the year. Depreciation expense represented
20,000 of the 650,000. Currency exchange rates were as follows:
January 1,20211= $.5
July 14,20211= $.58
October 1,20211= $.48
Average for 20211= $.52
December 31,20211= $.47
Required:
a. Assume that the stickle was the functional currency of the subsidiary (current
method). Calculate the translation adjustment for this subsidiary for 2021.
b. Assume that the U.S. dollar was the functional currency of the subsidiary (temporal
method). Calculate the remeasurement gain or loss for 2021. on a excel form .

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