Watson Company has a subsidiary in the country of Alonza where the local currency unit is the kamel (KM). On December 31. 2014, the subsidiary has the following balance sheet:
|
Cash
|
KM 13.500
|
Notes payable (due 2016)
|
KM 30.000
|
|
Inventory
|
25.000
|
Common stock
|
26.000
|
|
Land
|
8.000
|
Retained earnings
|
13.000
|
|
Building
|
45.000
|
|
|
|
Accumulated depreciation
|
(22.500)
|
|
|
|
|
KM 69.000
|
|
KM 69.000
|
The subsidiary acquired the inventory on August 1. 2014. and the land and buildings in 2000. It issued the common stock in 1998. During 2015. the following transactions took place:
The exchange rates for 1 KM are as follows:
|
1998
|
1 KM
|
=
|
$0.26
|
|
2000
|
1
|
=
|
0.24
|
|
August 1. 2014
|
1
|
=
|
0.34
|
|
December 31. 2014
|
1
|
=
|
0.36
|
|
February 1. 2015
|
1
|
=
|
0.38
|
|
May 1. 2015
|
1
|
=
|
0.40
|
|
June 1. 2015
|
1
|
=
|
0.42
|
|
August 1. 2015
|
1
|
=
|
0.44
|
|
September 1. 2015
|
1
|
=
|
0.46
|
|
October 1. 2015
|
1
|
=
|
0.48
|
|
November 1. 2015
|
1
|
=
|
0.50
|
|
December 1. 2015
|
1
|
=
|
0.52
|
|
December 31. 2015
|
1
|
=
|
0.56
|
|
Average for 2015
|
1
|
=
|
0.46
|
a. If this is a translation. what is the translation adjustment determined solely for 2015?
b. If this is a remeasurement. what is the remeasurement gain or loss determined solely for 2015?