Par Industries,a U.

Question 35

Par Industries,a U.S.Corporation,purchased Slice Company of New Zealand for $1,411,800 on January 1,2014.Slice's functional currency is the New Zealand dollar (NZ$).Slice's books are kept in NZ$.The book values of Slice's assets and liabilities were equal to fair values,with the exception of land which was valued at NZ$1,300,000.Slice's balance sheet appears below: img Relevant exchange rates are shown below: January 1,2014 1 NZ$ = $0.78 Average rate 2014 1 NZ$ = $0.79 December 31,2014 1 NZ$ = $0.80 Required: Determine the unrealized translation gain or loss at December 31,2014 relating to the excess allocated to the undervalued land.