Rolfe Company (a U.S.-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]):

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:

2020

Feb. 1 Paid 8,000,000 NGN on the note payable.

May 1 Sold entire inventory for 16,000,000 NGN on account.

June 1 Sold land for 6,000,000 NGN cash.

Aug. 1 Collected all accounts receivable.

Sept. 1 Signed long-term note to receive 8,000,000 NGN cash.

Oct. 1 Bought inventory for 20,000,000 NGN cash.

Nov. 1 Bought land for 3,000,000 NGN on account.

Dec. 1 Declared and paid 3,000,000 NGN cash dividend to parent.

Dec. 31 Recorded depreciation for the entire year of 2,000,000 NGN.

The U.S dollar ($) exchange rates for 1 NGN are as follows:

2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . NGN 1 = $0.0048

2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 = 0.0042

August 1, 2019 . . . . . . . . . . . . . . . . . . 1 = 0.0062

December 31, 2019 . . . . . . . . . . . . . 1 = 0.0064

February 1, 2020 . . . . . . . . . . . . . . . . 1 = 0.0066

May 1, 2020 . . . . . . . . . . . . . . . . . . . . . 1 = 0.0068

June 1, 2020 . . . . . . . . . . . . . . . . . . . . 1 = 0.0070

August 1, 2020 . . . . . . . . . . . . . . . . . . 1 = 0.0074

September 1, 2020 . . . . . . . . . . . . . . 1 = 0.0076

October 1, 2020 . . . . . . . . . . . . . . . . . 1 = 0.0078

November 1, 2020 . . . . . . . . . . . . . . . 1 = 0.0080

December 1, 2020 . . . . . . . . . . . . . . . 1 = 0.0082

December 31, 2020 . . . . . . . . . . . . . 1 = 0.0084

Average for 2020 . . . . . . . . . . . . . . . . 1 = 0.0074

a. Assuming the NGN is the subsidiary’s functional currency, what is the translation adjustment determined solely for 2020?

b. Assuming the U.S.$ is the subsidiary’s functional currency, what is the remeasurement gain or loss determined solely for 2020?

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Cash Inventory. Land... Building. Accumulated depreciation NGN 16,000 Note payable NGN 20,000 10,000 Common stock 20,000 4,000 Retained earnings 10,000 40,000 (20,000) NGN 50,000 NGN 50,000