Loring Company owns a subsidiary in Switzerland. The subsidiary was acquired on January 1,2013. Subsidiary trial balances for January 1 and December 31,2013, in Swiss francs (CHF) appear below.

Additional information:
1. Included in operating expenses is depreciation expense of CHF5,000.
2. Plant and equipment of CHF30,000 was purchased for cash during 2013, when the exchange rate was $0.50. Depreciation of CHF2,000 was taken on this purchase during 2013.
3. The ending inventory was purchased during the month of December.
4. Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year.
5. Dividends were declared and paid on December 31,2013.
6. Exchange rates for 2013 were as follows ($/CHF):
January 1, 2013$0.49
Average for 2013 0.52
Average for December, 2013 0.54
December 31, 2013 0.55
Required
a. Assume the functional currency of the subsidiary is the dollar. Prepare remeasured financial statements for the subsidiary, including a schedule showing the computation of the remeasurement gain or loss for 2013.
b. Repeat the requirements of part a, assuming the functional currency of the subsidiary is the Swiss franc.

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Dr (Cr) in thousands) January 1 December 31 Cash and receivables..ANRPA InventoriesAR Plant and equipment, net. Accounts and notes payable... Common stock. . Retained earnings, January 1... Sales. ..a Cost of sales.a Operating expenses Dividends Totals CHF 25,000 60,000 150,000 (125,000) (30,000) (80,000) CHF 30,000 55,000 175,000 (120,000) (30,000) (80,000) (500,000) 375,000 75,000 20,000 0 CHF .CHF