Rolfe Company (a U.S.-based company) has a subsidiary in Nigeriawhere the local currency unit is the naira (NGN). On December 31,2016, the subsidiary had the following balance sheet (amounts arein thousands (000's)): Cash NGN 16,830 Notes payable NGN 20,460Inventory 12,300 Common stock 22,700 Land 4,230 Retained earnings11,350 Building 42,300 Accumulated depreciation (21,150 ) NGN54,510 NGN 54,510 The subsidiary acquired the inventory on August1, 2016, and the land and building in 2010. It issued the commonstock in 2008. During 2017, the following transactions took place:2017 Feb. 1 Paid 8,230,000 NGN on the note payable. May 1 Soldentire inventory for 18,300,000 NGN on account. June 1 Sold landfor 6,230,000 NGN cash. Aug. 1 Collected all accounts receivable.Sept.1 Signed long-term note to receive 8,230,000 NGN cash. Oct. 1Bought inventory for 20,230,000 NGN cash. Nov. 1 Bought land for3,230,000 NGN on account. Dec. 1 Declared and paid 3,230,000 NGNcash dividend to parent. Dec. 31 Recorded depreciation for theentire year of 2,115,000 NGN. The U.S dollar ($) exchange rates for1 NGN are as follows: 2008 NGN 1 = $ 0.0071 2010 1 = 0.0065 August1, 2016 1 = 0.0085 December 31, 2016 1 = 0.0087 February 1, 2017 1= 0.0089 May 1, 2017 1 = 0.0091 June 1, 2017 1 = 0.0093 August 1,2017 1 = 0.0097 September 1, 2017 1 = 0.0099 October 1, 2017 1 =0.0101 November 1, 2017 1 = 0.0103 December 1, 2017 1 = 0.0105December 31, 2017 1 = 0.0130 Average for 2017 1 = 0.0120 Assumingthe NGN is the subsidiary's functional currency, what is thetranslation adjustment determined solely for 2017? Assuming theU.S.$ is the subsidiary's functional currency, what is theremeasurement gain or loss determined solely for 2017? (Input allamounts as positive. Enter amounts in whole dollars.) Rolfe Company(a U.S.-based company) has a subsidiary in Nigeria where the localcurrency unit is the naira (NGN). On December 31, 2016, thesubsidiary had the following balance sheet (amounts are inthousands (000's)): Cash NGN 16,830 Notes payable NGN 20,460Inventory 12,300 Common stock 22,700 Land 4,230 Retained earnings11,350 Building 42,300 Accumulated depreciation (21,150 ) NGN54,510 NGN 54,510 The subsidiary acquired the inventory on August1, 2016, and the land and building in 2010. It issued the commonstock in 2008. During 2017, the following transactions took place:2017 Feb. 1 Paid 8,230,000 NGN on the note payable. May 1 Soldentire inventory for 18,300,000 NGN on account. June 1 Sold landfor 6,230,000 NGN cash. Aug. 1 Collected all accounts receivable.Sept.1 Signed long-term note to receive 8,230,000 NGN cash. Oct. 1Bought inventory for 20,230,000 NGN cash. Nov. 1 Bought land for3,230,000 NGN on account. Dec. 1 Declared and paid 3,230,000 NGNcash dividend to parent. Dec. 31 Recorded depreciation for theentire year of 2,115,000 NGN. The U.S dollar ($) exchange rates for1 NGN are as follows: 2008 NGN 1 = $ 0.0071 2010 1 = 0.0065 August1, 2016 1 = 0.0085 December 31, 2016 1 = 0.0087 February 1, 2017 1= 0.0089 May 1, 2017 1 = 0.0091 June 1, 2017 1 = 0.0093 August 1,2017 1 = 0.0097 September 1, 2017 1 = 0.0099 October 1, 2017 1 =0.0101 November 1, 2017 1 = 0.0103 December 1, 2017 1 = 0.0105December 31, 2017 1 = 0.0130 Average for 2017 1 = 0.0120 Assumingthe NGN is the subsidiary's functional currency, what is thetranslation adjustment determined solely for 2017? Assuming theU.S.$ is the subsidiary's functional currency, what is theremeasurement gain or loss determined solely for 2017? (Input allamounts as positive. Enter amounts in whole dollars.) Rolfe Company(a U.S.-based company) has a subsidiary in Nigeria where the localcurrency unit is the naira (NGN). On December 31, 2016, thesubsidiary had the following balance sheet (amounts are inthousands (000's)): Cash NGN 16,830 Notes payable NGN 20,460Inventory 12,300 Common stock 22,700 Land 4,230 Retained earnings11,350 Building 42,300 Accumulated depreciation (21,150 ) NGN54,510 NGN 54,510 The subsidiary acquired the inventory on August1, 2016, and the land and building in 2010. It issued the commonstock in 2008. During 2017, the following transactions took place:2017 Feb. 1 Paid 8,230,000 NGN on the note payable. May 1 Soldentire inventory for 18,300,000 NGN on account. June 1 Sold landfor 6,230,000 NGN cash. Aug. 1 Collected all accounts receivable.Sept.1 Signed long-term note to receive 8,230,000 NGN cash. Oct. 1Bought inventory for 20,230,000 NGN cash. Nov. 1 Bought land for3,230,000 NGN on account. Dec. 1 Declared and paid 3,230,000 NGNcash dividend to parent. Dec. 31 Recorded depreciation for theentire year of 2,115,000 NGN. The U.S dollar ($) exchange rates for1 NGN are as follows: 2008 NGN 1 = $ 0.0071 2010 1 = 0.0065 August1, 2016 1 = 0.0085 December 31, 2016 1 = 0.0087 February 1, 2017 1= 0.0089 May 1, 2017 1 = 0.0091 June 1, 2017 1 = 0.0093 August 1,2017 1 = 0.0097 September 1, 2017 1 = 0.0099 October 1, 2017 1 =0.0101 November 1, 2017 1 = 0.0103 December 1, 2017 1 = 0.0105December 31, 2017 1 = 0.0130 Average for 2017 1 = 0.0120 Assumingthe NGN is the subsidiary's functional currency, what is thetranslation adjustment determined solely for 2017? Assuming theU.S.$ is the subsidiary's functional currency, what is theremeasurement gain or loss determined solely for 2017? (Input allamounts as positive. Enter amounts in whole dollars.)
