Costco Canada Holdings is a Canadian subsidiary of Costco Wholesale Corporation, a U.S. company. Assume that the following data relate to Costco Canada’s activities for 2020 (in millions).

Net monetary assets (liabilities), January 1, 2020	C$ 700
Acquisition of plant assets for debt, February 15, 2020	1,000
Purchase of inventory made evenly during 2020	3,500
Collection of receivables outstanding at January 1, 2020	2,700
Sales made evenly during 2020	6,000
Cost of goods sold	3,300
Depreciation of assets acquired when the exchange rate was $0.85/C$	400
Current operating expenses (excluding depreciation and amortization),incurred evenly during 2020	1,200
Refinancing or "rollover" of commercial paper	800

Exchange rates ($/C$) during 2020 are:

January 1, 2020	$0.80		Average for 2020	$0.75
February 15, 2020	0.78		December 31, 2020	0.72

(a) Assuming Costco Canada’s functional currency is the U.S. dollar, prepare a schedule to compute the remeasurement gain or loss for 2020.

Instructions :

1. Use negative signs with answers to indicate a negative exposed position balance.
2. Use negative signs with answers to indicate an amount that reduces the exposed position balance.
3. Using the drop-down menu, select the appropriate answer to indicate a remeasurement gain or remeasurement loss.

Answer rating: 100% (QA)

Calculation of Remeasurement Gain or Loss for 2020 in millions Part... View the full answer