On December $18,2020,$ Stephanie Corporation acquired $100$ percent of a Swiss company for $4\mathrm{.}0$ million Swiss francs $($CHF$),$ which is

indicative of book and fair value. At the acquisition date, the exchange rate was $$1\mathrm{.}00=$ CHF $1.$ On December $18,2020,$ the book and

fair values of the subsidiary's assets and liabilities were as follows:

Stephanie prepares consolidated financial statements on December $31,2020.$ By that date, the Swiss franc has appreciated to $$1\mathrm{.}10=$

CHF $1.$ Because of the year$-$end holidays, no transactions took place prior to consolidation.

a$.$ Determine the translation adjustment to be reported on Stephanie's December $31,2020,$ consolidated balance sheet, assuming that

the Swiss franc is the Swiss subsidiary's functional currency. What is the economic relevance of this translation adjustment?

b$.$ Determine the remeasurement gain or loss to be reported in Stephanie's $2020$ consolidated net income, assuming that the U$.$S$.$

dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?