Wahl Companys 20X5 consolidated financial statements include two wholly owned subsidiaries, Wahl Company of Australia (Wahl A) and Wahl Company of France (Wahl F). Functional currencies are the U.S. dollar for Wahl A and the European euro for Wahl F.

Required

1) What are the objectives of translating a foreign subsidiarys financial statements?

2) How are gains and losses arising from the translation or remeasurement of each subsidiarys financial statements measured and reported in Wahls consolidated financial statements?

3) What exchange rate is used to incorporate each subsidiarys equipment cost, accumulated depreciation, and depreciation expense in Wahls consolidated financial statements?