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Rolfe Company (a US-based company) has a subsidiary In Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the
Rolfe Company (a US-based company) has a subsidiary In Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s] Cash Inventory Land Building NGN 16,820 12,200 Notes payable Common stock Retained earnings NGN 20,448 22,600 11,300 4,220 42,200 Accumulated depreciation (21,100) NGN 54,340 NGN 54,340 The subsidiary acquired the Inventory on August 1, 2019, and the land and building in 2013. It Issued the common stock in 2011. During 2020, the following transactions took place ces 2020 Feb. 1 Paid 8,220,000 NGN on the note payable. May 1 Sold entire inventory for 18,200,000 NGN on account. June 1 Sold land for 6,220,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,220,000 NGN cash. Oct. 1 Bought inventory for 20,220,000 NGN cash. Nov. 1 Bought land for 3,228,eee NGN on account. Dec. 1 Declared and paid 3,220,000 NON cash dividend to parent. Dec. 31 Recorded depreciation for the entire year of 2,110,000 NGN. The US dollar (S) exchange rates for 1 NGN are as follows: 2011 2013 August 1, 2019 December 31, 2019 February 1, 2020 May 3, 2020 June 3, 2020 August 1, 2020 September 1, 2020 October 1, 2820 November 1, 2020 December 1, 2020 December 31, 2820 Average for 2020 NON 1- 50.0070 1 0.0064 1 0.004 1 0.0006 0.000 0.000 0.0092 0.0006 0.0098 0.0102 8.9104 0.0128 13 a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2020? b. Assuming the US$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2020? (input all amounts as positive. Enter amounts in whole dollars)
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