San Clemente Corporation, whose reporting currency is the mark $($M$),$ establishes a foreign subsidiary, whose reporting currency is the

peseta $($P$).$ On January $1,$ Year $1,$ San Clemente contributes Cash of P$20,000$ to the foreign subsidiary in exchange for Common Stock,

and the subsidiary purchases Land for P$30,000$ by negotiating a $10-$year Note Payable of P$30,000.$ On February $1,$ Year $1,$ the subsidiary

purchases Equipment for P$12,000.$ Sales, Salary Expense, and Other Operating Expenses are incurred evenly throughout Year $1.$ The

foreign subsidiary declares Dividends of P$10,000$ on December $1,$ Year $1.$ Relevant exchange rates for Year $1$ are as follows $($Mark per

Peseta$)$:

On December $31,$ Year $1,$ the subsidiary reports the following trial balance $($in pesetas$)$:

Required:

a$.$ Assume that the foreign subsidiary's functional currency is the peseta $($P$).$ Prepare a trial balance for it in marks $($M$)$ so that Year $1$

consolidated financial statements can be prepared. Show the calculation of translation adjustment for Year $1.$ Ignore income taxes.

b$.$ Assume that the foreign subsidiary's functional currency is the mark $($M$).$ Prepare a trial balance for it in marks $($M$)$ so that Year $1$

consolidated financial statements can be prepared. Show the calculation of remeasurement gain $($loss$)$ for Year $1.$ Ignore income taxes.