Zugar Company is domiciled in a country whose currency is thedinar. Zugar begins 2017 with three assets: cash of 25,800 dinars,accounts receivable of 81,500 dinars, and land that cost 215,000dinars when acquired on April 1, 2016. On January 1, 2017, Zugarhas a 165,000 dinar note payable, and no other liabilities. On May1, 2017, Zugar renders services to a customer for 135,000 dinars,which was immediately paid in cash. On June 1, 2017, Zugar incurreda 115,000 dinar operating expense, which was immediately paid incash. No other transactions occurred during the year. Currencyexchange rates for 1 dinar follow:
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| April 1, 2016 | $0.48 | = | 1 dinar |
| January 1, 2017 | 0.51 | = | 1 |
| May 1, 2017 | 0.52 | = | 1 |
| June 1, 2017 | 0.54 | = | 1 |
| December 31, 2017 | 0.56 | = | 1 |
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Assume that Zugar is a foreign subsidiary of a U.S.multinational company that uses the U.S. dollar as its reportingcurrency. Assume also that the dinar is the subsidiary’s functionalcurrency. What is the translation adjustment for this subsidiaryfor the year 2017?
Assume that Zugar is a foreign subsidiary of a U.S.multinational company that uses the U.S. dollar as its reportingcurrency. Assume also that the U.S. dollar is the subsidiary’sfunctional currency. What is the remeasurement gain or loss for2017?
Assume that Zugar is a foreign subsidiary of a U.S.multinational company. On the December 31, 2017, balance sheet,what is the translated value of the Land account? On the December31, 2017, balance sheet, what is the remeasured value of the Landaccount?
(Input all amounts as positive.)
