The SA Company was organized in Mexico on January l, 2014, with a capital stock issue that yielded 1,000,000 pesos (P). The exchange rate was $0.10/P. Transactions for 2014 and the relevant exchange rates are shown below. The average exchange rate for 2014 was $0.12/P.

Required
Prepare the SA Company's balance sheet and income statement in U.S. dollars, assuming SA Company's functional currency is (a) the U.S. dollar, and (b) the peso. Show the calculation of the remeasurement translation gain or loss. Assume FIFO for inventory.

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Date January 5...Bought 2,000 wood carvings at P200 each. June 30..Sold 1,000 carvings for P300,000. Exchange rate $0.10/P 0.12/P Transaction Purchased office equipment (ten-year life) for P200,000. Bought 1,500 carvings for P360,000. Paid rent of P30,000. Recorded straight-line depreciation on office equipment. Closed books and prepared financial statements December 31 。.... . . . 0.15/P