Assume instead that Silk is located in a different country and the local currency is the functional currency. See instructions below to perform an analysis using the current rate method.

Year	January 1	August 1	December 31	Average
2021	$ 0.17590		$ 0.16727	$ 0.17159
2022	$ 0.16727	$ 0.16771	$ 0.16550	$ 0.16669
2023	$ 0.16550	$ 0.16352	$ 0.17530	$ 0.16810
Using the exchange rates presented, translate Silks 12/31/2023 trial balance. For accounts that use historical rates and a date is not listed, use 1/1/21. Use the reconciliation at the bottom to help solve for the Retained Earnings beginning balance. It's been started for you.
December 31, 2021 Trial Balances	Local Currency		US Dollars
Revenues	(700,000)		$ -
Cost of Goods Sold	440,000		$ -
Operating Expenses	35,000		$ -
Depreciation and Amortization	25,000		$ -
Retained Earnings - 1/1/23	(620,000)		$ (91,162)
Dividends Declared - 8/1/23	60,000		$ -
Cash	290,000		$ -
Accounts Receivable	410,000		$ -
Inventory	180,000		$ -
Land	390,000		$ -
Buildings and Equipment (net)	300,000		$ -
Liabilities	(400,000)		$ -
Common Stock	(320,000)		$ -
Additional Paid-in Capital	(90,000)		$ -
Translation Adjustment			$ 91,162
			$ -
Retained Earnings 1/1/22	(545,000)	$ 0.16727	$ (91,162)
Net Income 2022	(100,000)		$ -
Dividends 8/1/22	25,000		$ -
Retained Earnings 12/31/22 (1/1/23)	(620,000)		$ (91,162)
Check your work for the current method only by calculating the translation adjustment using the changes in net assets. This method is shown in the PowerPoint slides and on page 497.
Retained Earnings 1/1/23	(620,000)		$ (91,162)
Common Stock	(320,000)		$ -
Additional Paid-in Capital	(90,000)		$ -
Net Assets 1/1/23	(1,030,000)		$ (91,162)
Net Income 2023	(200,000)		$ -
Dividends 2023	60,000		$ -
Net Assets 12/31/23	(1,170,000)		$ (91,162)
Net Assets, 12/31/23 at current rate	(1,170,000)		$ -
Translation Adjustment			$ 91,162
Is the translation adjustment that you calculated recorded with a debit or credit?
Do they have a net asset or net liability exposure?