Refer to the data in Exercises E12-5 and E12-7.

Required
a. Prepare a proof of the remeasurement gain or loss computed in Exercise E12-7.
b. How should this remeasurement gain or loss be reported on Popular Creek€™s consolidated financial statements and the financial statements of its foreignsubsidiary?

Debit Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total SFr 7,000 20,000 5,000 25,000 100,000 SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 SFr 282.000