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The 2021 beginning and ending trial balances of a German subsidiary of a U.S. company appear below, in euros.

	1-Jan	31-Dec
	Dr(Cr)	Dr (Cr)
Cash and receivables	37,200	46,500
Inventories at cost	93,000	102,300
Investments, at market	69,750	88,350
Plant and equipment, net	465,000	520,800
Intangibles, net	23,250	25,110
Accounts Payable	(139,500)	(176,700)
Unearned Revenue	(74,400)	(60,450)
Notes Payable	(186,000)	(209,250)
Deferred Tax Liabilities	(65,100)	(76,260)
Capital stock	(46,500)	(46,500)
Retained earnings, January 1	(176,700)	(176,700)
Dividends		55,800
Sales		(1,302,000)
Cost of goods sold		883,500
Operating expenses	_______	325,500
Total	0	0

Exchange rates ($/) are:

January 1, 2021 $1.13

Average for 2021 1.17

December 31, 2021 1.19

Additional information:

1. Dividends were declared on November 1, 2021, when the exchange rate was $1.165.

2. Sales, inventory purchases, and out-of-pocket operating expenses were incurred evenly during the year.

3. Plant and equipment on hand at the beginning of the year was purchased when the exchange rate was $1.14/. Equipment of 80,000 was acquired during 2021, when the exchange rate was $1.155.

4. Depreciation of 20,000 is included in operating expenses. Of that amount, 4,000 relates to plant and equipment acquired during 2021.

Required:

a. Assume the subsidiarys functional currency is the U.S. dollar. Compute the remeasurement gain or loss for 2021. Also, prepare a schedule to show how remeasuremnent gain/loss is calculated.

	Dr (Cr)	Rate	U.S. $
Cash and receivables	46,500
Inventories at cost	102,300
Investments, at market	88,350
Plant and equipment, net	520,800
Intangibles, net	25,110
Accounts Payable	(176,700)
Unearned Revenue	(60,450)
Notes Payable	(209,250)
Deferred Tax Liabilities	(76,260)
Capital stock	(46,500)
Retained earnings, January 1	(176,700)
Dividends	55,800
Sales	(1,302,000)
Cost of goods sold	883,500
Operating expenses	325,500
Remeasurement (gain)/loss
Total	0

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