$1.$ Translate Swoboda$$s financial statements into U$.$S$.$ dollars in accordance with U$.$S$.$ GAAP at December $31,$ Year $2,$ using the following scenarios.

Assume the Polish zloty is the functional currency. The December $31,$ Year $1,$ retained earnings amount that appeared in Swoboda$$s translated financial statements was $$56,250.$ The December $31,$ Year $1,$ cumulative translation adjustment that appeared in Swoboda$$s translated balance sheet was negative $$506,250.$

Assume the U$.$S$.$ dollar is the functional currency. The December $31,$ Year $1,$ retained earnings amount that appeared in Swoboda$$s remeasured financial statements was $$882,500.$

Assume the same scenario described in $($A$)$ except Swoboda has no long$-$term debt. Instead, Swoboda has common stock of PLN $10,000,000$ and additional paid$-$in capital of PLN $25,000,000.$ The December $31,$ Year $1,$ retained earnings amount that appeared in Swoboda$$s remeasured financial statements was negative $$367,500.$

Explain why the sign of the translation adjustments in $(1$A$),(1$B$),$ and $(1$C$)$ is positive or negative.