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Please answer the following and if possible show your work. Thank you. On December...

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Accounting

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Please answer the following and if possible show your work. Thank you.

On December 18, 2020, Stephanle Corporation acquired 100 percent of a Swiss company for 4.005 million Swlss francs (CHF), which is Indicatlve of book and falr value. At the acquisition date, the exchange rate was $1.00=CHF1. On December 18, 2020, the book and falr values of the subsidlary's assets and IIabilitles were as follows: Stephanle prepares consolidated financlal statements on December 31,2020 . By that date, the Swiss franc has appreclated to $1.10= CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation. a. DetermIne the translation adjustment to be reported on Stephanle's December 31,2020, consolidated balance sheet, assumIng that the Swiss franc is the Swiss subsidlary's functional currency. What is the economic relevance of this translation adjustment? b. DetermIne the remeasurement galn or loss to be reported In Stephanle's 2020 consolidated net Income, assumIng that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement galn or loss

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