8)

8) Calculate the cumulative translation adjustment for thig U.S. MNC translating the balance sheet and income statement Of a French subsidlary. which keeps its books in euro, but that is translated into U.S. dollars using the current rale method. the reporting currency of the U. S _ BINC_ subsidiary is at the end Of its first year of operation. The historical exchange rate is $1 _60/C and the most recent exchange rate is Sl. 50/C. $ 3, 900 $ 1,334 $ 9,900 $ 11, 13 s 2,323 $ 1,394 $ 1,394 e e e e e e 2, 100 1, soo 3. 000 c, 600 1, 200 1, 800 2; 700 900 c, 600 10.000 7, 500 1, 000 1. soo 900 S el, goo) Net fixed Total Asge Retained earnings Total LGE Incorre Statement Dep a ion Tax (408) Prof i t: after Foreign Exchange gain 3. ISo 2,250 4. 300 1, Boo 2, 700 4, 320 1, 542 s 929 i, 394 (JOSS) Net income Dividends Addi t i on co e 300 Earnings