Translation and Remeasurement of Subsidiary Trial Balance Costsave Corporation, a U.S. company, acquired Denner, a discount supermarket chain in Switzerland, on January 1, 2017. Denner is a subsidiary of Costsave, and its results are consolidated with those of Costsave in Costsave's financial statements. Denner's trial balances for January 1 and December 31, 2017, in Swiss francs (CHF) appear below. Dr(Cr) (in thousands) December 31 January 1 Cash and receivables CHF 45,000 CHF30,000 Inventories 55,000 65,000 Plants and equipment, net 180,000 160,000 Accounts and notes payable (120,000) (125,000) Common stock (40,000) (40,000) Retained earnings, January 1 (90,000) (90,000) Dividends 20,000 Sales (500,000) Cost of sales 375,000 Operating expenses 75,000 Totals CHFO CHFO Additional Information: (in thousands) 1. Included in operating expenses is depreciation expense of CHF5,000. 2. Plant and equipment of CHF25,000 was purchased for cash during 2017, when the exchange rate was $1.04. Depreciation of CHF2,000 was taken on this purchase during 2017. 3. The ending inventory was purchased during the month of December. 4. Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year. 5. Dividends were declared on December 31, 2017. 6. Exchange rates for 2017 were as follows ($/CHF): $1.03 January 1, 2017 Average for 2017 Average for December, 2017 December 31, 2017 1.06 1.08 1.09 It is now December 31, 2017, and Denner's accounts must be converted to U.S. dollars in preparation for consolidation. (a) Denner's functional currency is the U.S. dollar. Prepare Denner's remeasured December 31, 2017 trial balance, and a schedule showing the computation of the remeasurement gain or loss for 2017 Use negative signs with your Cr (credit balance) answers. Enter answers in thousands. Remeasured Trial Balance, December 31 2017 CHF Dr(Cr) $/CHF Cash, receivables CHF45,000 1.09 $ Inventories 55,000 1.08 Plant and equipment, net 180,000 (1) below Accounts and notes payable (120,000) 1.09 $ Common stock (40,000) 1.03 Retained earnings, beginning (90,000) 1.03 Dividends 20,000 1.09 Sales (500,000) 1.06 Cost of sales 375,000 (2) below Operating expenses 75,000 (3) below Remeasurement (gain) or loss (4) below CHFO Dr(Cr) 49,050 59,400 185,630 (130,800) (41,200) (92,700) 21,800 (530,000) 397,500 X 79,370 (1,950) * 0 $ Do not use negative signs with any of your answers below. (1) Plant and equipment, net (in thousands) CHF Plant and equipment, net: purchased prior to 2017 CHE 23,000 x Plant and equipment, net: purchased during 2017 180,000 x CHF 157,000 X $/CHF 1.03 $ 1.04 161,710 23,920 185,630 $ Do not use negative signs with any of your answers below. (2) Cost of Sales (in thousands) CHF $/CHF $ Beginning inventory CHE 0 x x 0x 0 x $ Purchases 0X Ending inventory 0 x OX Cost of sales CHE 0x $ OX 0 X OX $ Do not use negative signs with any of your answers below. (3) Operating expenses (in thousands) CHF Depreciation (for P&E purchased prior to 2017) CHF OX Depreciation (for P&E purchased in 2017) OX Other operating expenses Ox Total CHF 0 x $/CHF / 0 x $ Ox 0 x 0X 0 X OX $ OX Instructions for Remeasurement Gain/Loss Schedule: 1. Use negative signs with answers to indicate a negative exposed position balance. 2. Use negative signs with answers to indicate an amount that reduces the exposed position balance. 3. Using the drop-down menu, select the appropriate answer to indicate a remeasurement gain or remeasurement loss. 4. Do not use a negative sign with your remeasurement gain or remeasurement loss answer. $ 0x OX (4) Remeasurement Gain/Loss Schedule (in thousands) CHE $/CHF Exposed position, beginning CHF 0 0 X $ Sales 0 x 0x Purchases 0 x OX Cash operating expenses OX 0 x Dividends 0 X OX Plant and equipment acquisition OX OX OX 0 X 0 X 0 X 0 X 0 x $ 0 x 0 x (4) Remeasurement Gain/Loss Schedule (in thousands) CHF $/CHF Exposed position, beginning CHF OX 0 X $ Sales OX Purchases 0 X 0 X Cash operating expenses OX 0 X Dividends 0 X 0 X Plant and equipment acquisition 0 x OX 0 X 0X 0 0 X 0X CHF OX 0 X 0 X Exposed position, ending Remeasurement loss $ 0 X (b) Denner's functional currency is the Swiss franc. Prepare Denner's translated December 31, 2017 trial balance, and a schedule showing the computation of the translation gain or loss for 2017 Use negative signs with your Cr (credit balance) answers. Enter answers in thousands. $ Dr(Cr) 0 x 0 x OX Translated Trial Balance December 31 2017 CHF Dr(Cr) ( $/CHF Cash, receivables CHF45,000 0 x $ Inventories 55,000 0 X Plant and equipment, net 180,000 0X Accounts and notes payable (120,000) OX Common stock (40,000) OX Retained earnings, beginning (90,000) OX Dividends 20,000 0 x Sales (500,000) OX Cost of sales 375,000 0X Operating expenses 75,000 OX Translation loss (gain) see below CHFO $ Ox 0X 0 x 0X OX 0 x 0 X 0 Instructions for Translation Gain/Loss Schedule: 1. Use negative signs with answers to indicate a negative exposed position balance. 2. Use negative signs with answers to indicate an amount that reduces the exposed position balance. 3. Using the drop-down menu, select the appropriate answer to indicate a translation gain or translation loss. 4. Do not use a negative sign with your translation gain or translation loss answer. $ Translation Gain/Loss Schedule (in thousands) CHE $/CHF Exposed position, beginning CHE 0 * $ Net income OX OX Dividends 0 x 0 X 0 X 0 X OX OX CHE 0 X 0 X Exposed position, ending Translation gain OX OX $ Check Translation and Remeasurement of Subsidiary Trial Balance Costsave Corporation, a U.S. company, acquired Denner, a discount supermarket chain in Switzerland, on January 1, 2017. Denner is a subsidiary of Costsave, and its results are consolidated with those of Costsave in Costsave's financial statements. Denner's trial balances for January 1 and December 31, 2017, in Swiss francs (CHF) appear below. Dr(Cr) (in thousands) December 31 January 1 Cash and receivables CHF 45,000 CHF30,000 Inventories 55,000 65,000 Plants and equipment, net 180,000 160,000 Accounts and notes payable (120,000) (125,000) Common stock (40,000) (40,000) Retained earnings, January 1 (90,000) (90,000) Dividends 20,000 Sales (500,000) Cost of sales 375,000 Operating expenses 75,000 Totals CHFO CHFO Additional Information: (in thousands) 1. Included in operating expenses is depreciation expense of CHF5,000. 2. Plant and equipment of CHF25,000 was purchased for cash during 2017, when the exchange rate was $1.04. Depreciation of CHF2,000 was taken on this purchase during 2017. 3. The ending inventory was purchased during the month of December. 4. Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year. 5. Dividends were declared on December 31, 2017. 6. Exchange rates for 2017 were as follows ($/CHF): $1.03 January 1, 2017 Average for 2017 Average for December, 2017 December 31, 2017 1.06 1.08 1.09 It is now December 31, 2017, and Denner's accounts must be converted to U.S. dollars in preparation for consolidation. (a) Denner's functional currency is the U.S. dollar. Prepare Denner's remeasured December 31, 2017 trial balance, and a schedule showing the computation of the remeasurement gain or loss for 2017 Use negative signs with your Cr (credit balance) answers. Enter answers in thousands. Remeasured Trial Balance, December 31 2017 CHF Dr(Cr) $/CHF Cash, receivables CHF45,000 1.09 $ Inventories 55,000 1.08 Plant and equipment, net 180,000 (1) below Accounts and notes payable (120,000) 1.09 $ Common stock (40,000) 1.03 Retained earnings, beginning (90,000) 1.03 Dividends 20,000 1.09 Sales (500,000) 1.06 Cost of sales 375,000 (2) below Operating expenses 75,000 (3) below Remeasurement (gain) or loss (4) below CHFO Dr(Cr) 49,050 59,400 185,630 (130,800) (41,200) (92,700) 21,800 (530,000) 397,500 X 79,370 (1,950) * 0 $ Do not use negative signs with any of your answers below. (1) Plant and equipment, net (in thousands) CHF Plant and equipment, net: purchased prior to 2017 CHE 23,000 x Plant and equipment, net: purchased during 2017 180,000 x CHF 157,000 X $/CHF 1.03 $ 1.04 161,710 23,920 185,630 $ Do not use negative signs with any of your answers below. (2) Cost of Sales (in thousands) CHF $/CHF $ Beginning inventory CHE 0 x x 0x 0 x $ Purchases 0X Ending inventory 0 x OX Cost of sales CHE 0x $ OX 0 X OX $ Do not use negative signs with any of your answers below. (3) Operating expenses (in thousands) CHF Depreciation (for P&E purchased prior to 2017) CHF OX Depreciation (for P&E purchased in 2017) OX Other operating expenses Ox Total CHF 0 x $/CHF / 0 x $ Ox 0 x 0X 0 X OX $ OX Instructions for Remeasurement Gain/Loss Schedule: 1. Use negative signs with answers to indicate a negative exposed position balance. 2. Use negative signs with answers to indicate an amount that reduces the exposed position balance. 3. Using the drop-down menu, select the appropriate answer to indicate a remeasurement gain or remeasurement loss. 4. Do not use a negative sign with your remeasurement gain or remeasurement loss answer. $ 0x OX (4) Remeasurement Gain/Loss Schedule (in thousands) CHE $/CHF Exposed position, beginning CHF 0 0 X $ Sales 0 x 0x Purchases 0 x OX Cash operating expenses OX 0 x Dividends 0 X OX Plant and equipment acquisition OX OX OX 0 X 0 X 0 X 0 X 0 x $ 0 x 0 x (4) Remeasurement Gain/Loss Schedule (in thousands) CHF $/CHF Exposed position, beginning CHF OX 0 X $ Sales OX Purchases 0 X 0 X Cash operating expenses OX 0 X Dividends 0 X 0 X Plant and equipment acquisition 0 x OX 0 X 0X 0 0 X 0X CHF OX 0 X 0 X Exposed position, ending Remeasurement loss $ 0 X (b) Denner's functional currency is the Swiss franc. Prepare Denner's translated December 31, 2017 trial balance, and a schedule showing the computation of the translation gain or loss for 2017 Use negative signs with your Cr (credit balance) answers. Enter answers in thousands. $ Dr(Cr) 0 x 0 x OX Translated Trial Balance December 31 2017 CHF Dr(Cr) ( $/CHF Cash, receivables CHF45,000 0 x $ Inventories 55,000 0 X Plant and equipment, net 180,000 0X Accounts and notes payable (120,000) OX Common stock (40,000) OX Retained earnings, beginning (90,000) OX Dividends 20,000 0 x Sales (500,000) OX Cost of sales 375,000 0X Operating expenses 75,000 OX Translation loss (gain) see below CHFO $ Ox 0X 0 x 0X OX 0 x 0 X 0 Instructions for Translation Gain/Loss Schedule: 1. Use negative signs with answers to indicate a negative exposed position balance. 2. Use negative signs with answers to indicate an amount that reduces the exposed position balance. 3. Using the drop-down menu, select the appropriate answer to indicate a translation gain or translation loss. 4. Do not use a negative sign with your translation gain or translation loss answer. $ Translation Gain/Loss Schedule (in thousands) CHE $/CHF Exposed position, beginning CHE 0 * $ Net income OX OX Dividends 0 x 0 X 0 X 0 X OX OX CHE 0 X 0 X Exposed position, ending Translation gain OX OX $ Check