Use the information provided in Problem 13-9 for P Company and SFr Company.
A. Convert the accounts of the foreign subsidiary, assuming that the U.S. dollar is the functional currency of both companies. For this problem assume that the subsidiary's beginning (1/1/09) retained earnings balance in the translated balance sheet is $76,660.
B. Prepare a schedule to verify the translation gain or loss, assuming a 637,000 franc net ex posed liability position at the beginning of the year.