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A U.S. company formed a subsidiary in Spain on January 1, 2020. The subsidiary's summary trial balances for January 1 and December 31, 2020 are
A U.S. company formed a subsidiary in Spain on January 1, 2020. The subsidiary's summary trial balances for January 1 and December 31, 2020 are presented below, in euros. The subsidiary's functional currency is the euro. January 1, 2020 Dr (Cr) 15,000 December 31, 2020 Dr (Cr) 20,000 Cash, receivables Inventories, at cost 250,000 350,000 Plant assets, net 750,000 1,050,000 Liabilities (1,070,000) (715,000) (300,000) Capital stock (300,000) Retained earnings, beg. Revenues (840,000) Expenses 800,000 Other comprehensive income (10.000) Total 0 0 Exchange rates (US$/) are: January 1, 2020 2020 average December 31, 2020 $1.25 1.27 1.30 Required Calculate the 2020 translation gain or loss for the subsidiary. A U.S. company formed a subsidiary in Spain on January 1, 2020. The subsidiary's summary trial balances for January 1 and December 31, 2020 are presented below, in euros. The subsidiary's functional currency is the euro. January 1, 2020 Dr (Cr) 15,000 December 31, 2020 Dr (Cr) 20,000 Cash, receivables Inventories, at cost 250,000 350,000 Plant assets, net 750,000 1,050,000 Liabilities (1,070,000) (715,000) (300,000) Capital stock (300,000) Retained earnings, beg. Revenues (840,000) Expenses 800,000 Other comprehensive income (10.000) Total 0 0 Exchange rates (US$/) are: January 1, 2020 2020 average December 31, 2020 $1.25 1.27 1.30 Required Calculate the 2020 translation gain or loss for the subsidiary
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