On December $18,2024,$ Stephkado Corporation acquired $100$ percent of a Swiss company for $4\mathrm{.}019$ million Swiss francs $($CHF$),$ which is indicative of book and fair value. At the acquisition date, the exchange rate was $$1\mathrm{.}00=$ CHF $1.$ On December $18,2024,$ the book and fair values of the subsidiary$$s assets and liabilities were as follows:

CashCHF $819,000$Inventory$1,319,000$Property, plant, and equipment$4,019,000$Notes payable$(2,138,000)$

Stephkado prepares consolidated financial statements on December $31,2024.$ 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. Property, plant, and equipment is depreciated using a units$-$of$-$production method, so no depreciation is required from December $18$ to December $31.$ The Swiss subsidiary has no revenues and no expenses from December $18$ to December $31,$ and its book value is unchanged from December $18$ to December $31.$

Required:

Determine the translation adjustment to be reported on Stephkado$$s December $31,2024,$ consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary$$s functional currency. What is the economic relevance of this translation adjustment?

Determine the remeasurement gain or loss to be reported in Stephkado$$s $2024$ consolidated net income, assuming that the U$.$S$.$ dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?

On December $18,2024,$ Stephkado Corporation acquired $100$ percent of a Swiss company for $4\mathrm{.}019$ million Swiss francs $($CHF$),$ which is indicative of book and fair value. At the acquisition date, the exchange rate was $\backslash (\backslash$$ $1\mathrm{.}00=\backslash )$ CHF $1.$ On December $18,2024,$ the book and fair values of the subsidiary's assets and liabilities were as follows:

Stephkado prepares consolidated financial statements on December $31,2024.$ By that date, the Swiss franc has appreciated to $\backslash (\backslash$$ $1\mathrm{.}10=\backslash )$ CHF $1.$ Because of the year$-$end holidays, no transactions took place prior to consolidation. Property, plant, and equipment is depreciated using a units$-$of$-$production method, so no depreciation is required from December $18$ to December $31.$ The Swiss subsidiary has no revenues and no expenses from December $18$ to December $31,$ and its book value is unchanged from December $18$ to December $31.$

Required:

a$.$ Determine the translation adjustment to be reported on Stephkado's December $31,2024,$ 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 Stephkado's $2024$ consolidated net income, assuming that the U$.$S$.$ dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?

Answer is complete but not entirely correct.