The depreciable assets were acquired as follows: two-thirds at the beginning of 2013 and the balance on March 31, 2014. These assets are depreciated over 15 years per the straight-line method. All other assets including 600,000 FCA of cash and the balance of other assets were incurred uniformly throughout the last quarter of 2015. Net sales and all other expenses occur uniformly throughout the year. Of the common stock, 2,000,000 FCA was issued at the beginning of 2013 when Moser acquired its 100% interest and another 200,000 FCA was issued on March 31, 2015. The remeasured value of retained earnings as of December 31, 2014, was 560,000 FCA.
Moser is experiencing extreme competitive pressure in its U.S. markets, and shareholders are concerned about declines in reported consolidated net income. In response, Moser will be hedging against the negative impact of possible 2015 remeasurement losses and negative cumulative translation adjustments. On March 31, Moser borrowed FCB at a stated interest rate of 8%. Various actual and expected exchange rates are as follows:
1. Prepare a remeasured forecasted trial balance for Gilmore Enterprises for the year 2015.
2. Prepare a translated forecasted trial balance for Gilmore Enterprises for the year 2015. Assume that the translated value of beginning 2015 retained earnings is $241,000.