A U.S. company establish a subsidiary in Mexico on January 1, year 1, by investing 70,000 pesos. During its first year of operations, the Mexican company generates net income of 2,000 pesos. No dividends were sent to the parent.

The exchange rates between U.S. dollars and pesos are as follows:

January 1, year 1	$ 0.70
Average, year 1	$ 0.71
December 31, year 1	$ 0.72

Determine the amount of translation adjustment? is it positive or negative adjustment?