Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria, where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]):
The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place:
The U.S dollar ($) exchange rates for 1 NGN are as follows:
a. Assuming the NGN is the subsidiary’s functional currency, what is the translation adjustment determined solely for 2020? b. Assuming the U.S.$ is the subsidiary’s functional currency, what is the remeasurement gain or loss determined solely for 2020?