Problem 11-9 (LO 5, 6) Same facts as 11-8 except involve remeasurement. Useful comparison with 11-8. Assume the same facts as Problem 11-8 with the following exceptions:

a. Tobac’s functional currency is the U.S. dollar.

b. Balfour’s investment in Tobac consists of the following:

Initial investment (33,000,000 FC 0.55) . . . . . . . . . . . . . . . . . . . . . . . . . $18,150,000 Last six months, 20X5 income (including the remeasurement gain or loss) . . . . . . 1,610,000 20X6 income (including the remeasurement gain or loss) . . . . . . . . . . . . . . . . 1,860,000 20X7 income (excluding the remeasurement gain or loss) . . . . . . . . . . . . . . . . 3,495,363 Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,115,363 Note that the balance has not yet been adjusted for the 20X7 remeasurement gain or loss