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On January 2, 20X8, Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Perth's balance sheet contained the following information, please show the work for the probem

ACC 545, Baker 9e, study assist, updated 11/2/12. Chapter 12 Page 7 of9 Foreign Currency Units Cash Receivables (net) Inventories (FIFO) Plant and Equipment (net) Total 150,000 500,000 1,500,000 2,190,000 Accounts Payable Capital Stock Retained Earnings Total 200,000 600,000 1,390,000 2,190,000 Perth's income statement for 20X8 is as follows: oreign Currency Units (FCU Revenues from Sales Cost of Goods Sold Gross Margin Operating Expenses (exclusive of depreciation) Depreciation Expense Income Taxes Net Income 1,010,000 590 420,000 (120,000) (200,000) (40,000) 60,000 The balance sheet of Perth at December 31, 20X8, is as follows: Foreign Currency Units (F Cash Receivables (net) Inventories (FIFO) Plant and Equipment (net) Total 210,000 520,000 1,300,000 2,210,000 Accounts Payable Capital Stock Retained Earmings Total 180,000 600,000 1,430,000 2,210,000 Perth declared and paid a dividend of 20,000 FCU on October 1, 20X8. Spot rates at various dates for 20X8 follow: January 2 October 1 December 31 Weighted Average FCU- S1.50 1 FCU$1.60 1 FCU$1.70 FCU- S1.55 Assume Perth's revenues, purchases, operating expenses, depreciation expense, and income taxes were incurred evenly throughout 20X8 48. Refer to the above information. Assuming the U.S. dollar is the functional currency, what is Johnson's remeasurement gain (loss) for 20X8? (Assume the ending inventory was acquired on December 31, 20x8.) A. $31,000 gain B. $36,500 loss C.$22,000 gain $32,000 gain

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