A US Company Acquired a Subsidiary in the U During the Year, the Subsidiary Earned Sales Revenue of £10,000

A U.S. company acquired a subsidiary in the U.K. at the beginning of the year. The subsidiary's trial balance at the date of acquisition was as follows:
$\begin{array}{|l|r|}\hline \text { Cash } & £ 100 \\\hline \text { Invento ries } & 400 \\\hline \text { Equipment, net } & 800 \\\hline \text { Liabilities } & \{1,150\} \\\hline \text { Capital stock } & \{50\} \\\hline \text { Retained earnings } & \{100\} \\\hline & £ \quad0 \\\hline\end{array}$
During the year, the subsidiary earned sales revenue of £10,000 and purchased inventories of £7,500 evenly throughout the year. All were cash transactions. The subsidiary incurred operating expenses of £2,000, of which £200 was depreciation on equipment. The out-of-pocket operating expenses occurred evenly throughout the year and were paid in cash. Equipment of £100 was purchased during the year, on credit, when the exchange rate was $1.37/£. Of the liabilities outstanding at the beginning of the year, £500 were paid in cash evenly throughout the year. The subsidiary's ending inventory balance was £350. Other exchange rate information as follows ($/£):
$$\begin{array} { l r } \text { Beginning of year } & \$ 1.36 \\\text { Average for year } & 1.38 \\\text { End of year } & 1.40\end{array}$$ Required
a. Present the subsidiary's end-of-year trial balance, in pounds sterling.
b. Prepare a schedule calculating the subsidiary's translation gain or loss, assuming its functional currency is the pound sterling.
c. Prepare a schedule calculating the subsidiary's remeasurement gain or loss, assuming its functional currency is the U.S. dollar.