TBD Corporation $($a U$.$S$.-$based company$)$ acquired $100$ percent of a Swiss company for $8\mathrm{.}2$ million Swiss francs on December $20,$ Year $1.$ At the date of acquisition, the exchange rate was $$1\mathrm{.}00$ per franc. The acquisition price is attributable to the following assets and liabilities denominated in Swiss francs:

$\backslash$table$[[$Cash$,1,000,000],[$Inventory$,2,000,000],[$Fixed assets,$7,000,000],[$Notes payable,$(1,800,000)]]$

TBD Corporation prepares consolidated financial statements on December $31,$ Year $1.$ By that date, the Swiss franc appreciated to $$1\mathrm{.}03.$ Because of the year$-$end holidays, no transactions took place between the date of acquisition and the end of the year.

Required:

a$.$ Determine the translation adjustment to be reported on TBD$\text{'}$s December $31,$ Year $1,$ 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 TBD$\text{'}$s Year $1$ consolidated income, assuming that the U$.$S$.$ dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?