Question

Translation and Remeasurement of Subsidiary Trial Balance

Costsave Corporation, a U.S. company, acquired Denner, a discount supermarket chain in Switzerland, on January 1, 2017. Denner is a subsidiary of Costsave, and its results are consolidated with those of Costsave in Costsave's financial statements. Denner's trial balances for January 1 and December 31, 2017, in Swiss francs (CHF) appear below.

	Dr(Cr)
(in thousands)	December 31	January 1
Cash and receivables	CHF 45,000	CHF30,000
Inventories	55,000	65,000
Plants and equipment, net	180,000	160,000
Accounts and notes payable	(120,000)	(125,000)
Common stock	(40,000)	(40,000)
Retained earnings, January 1	(90,000)	(90,000)
Dividends	20,000	--
Sales	(500,000)	--
Cost of sales	375,000	--
Operating expenses	75,000	--
Totals	CHF 0	CHF 0

Additional Information: (in thousands)

Included in operating expenses is depreciation expense of CHF5,000.

Plant and equipment of CHF25,000 was purchased for cash during 2017, when the exchange rate was $1.04. Depreciation of CHF2,000 was taken on this purchase during 2017.

The ending inventory was purchased during the month of December.

Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year.

Dividends were declared on December 31, 2017.

Exchange rates for 2017 were as follows ($/CHF):

January 1, 2017	$1.03
Average for 2017	1.06
Average for December, 2017	1.08
December 31, 2017	1.09

It is now December 31, 2017, and Denner's accounts must be converted to U.S. dollars in preparation for consolidation.

Do not use negative signs with any of your answers below.

(1) Plant and equipment, net (in thousands)
	CHF	$/CHF	$
Plant and equipment, net: purchased prior to 2017	CHF Answer	Answer	$Answer
Plant and equipment, net: purchased during 2017	Answer	Answer	Answer
	CHF Answer		$Answer

Answer 1

Rules for translation      

Monetary Items                 Using Closing rate

Non-Monetary items     Exchange rate at the date of transaction

Income and expense      Rate as on date of transaction

	Plant, Property and Equipment
	Date	Particulars	Value
			CHF	$/CHF	$	Explanation
1	1st Jan 2017	Opening Balance	160,000.00	1.03	164,800.00	Recorded at 1.03$. Since other details of cost not provided
2	During 2017	Asset purchase	25,000.00	1.04	26,000.00	25000*1.04 exchange rate for purchase of asset
3	31st December 2017	Depreciation - Asset before 2017	3,000.00	1.09	3,270.00	Recorded at 1.09$ for current year purchase also. The conversion rate is that of transaction date.
4	31st December 2017	Depreciation - Asset 2017	2,000.00	1.09	2,180.00
		Total	188,000.00		194,070.00

(1) Plant and Equipment, net (in thousands)
		CHF	$/CHF	$
Plant and equipment, net: purchased prior to 2017		157,000.00	1.028854	161,530.00	(1-3)
Plant and equipment, net: purchased prior to 2017		23,000.00	1.035652	23,820.00	(2-4)