Board Company has a foreign subsidiary that began operations at the start of 2015 with assets of 137,000 kites (the local currency unit) and liabilities of 64,000 kites. During this initial year of operation, the subsidiary reported a profit of 31,000 kites. It distributed two dividends, each for 5,500 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow: January 1, 2015 (start of business) March 1, 2015 Weighted average rate for 2015 October 1, 2015 December 31, 2015 $ 0.74 0.72 0.71 0.70 0.69 a. Assume that the kite is this subsidiary's functional currency. What translation adjustment would Board report for the year 2015? Translation adjustment b. Assume that on October 1, 2015, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 250,000 kites in three months at a forward exchange rate of $0.70/1 kite. Prepare the journal entries required by this forward contract. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Record the entry for the Board being entered into a forward exchange contract. Note: Enter debits before credits. Date General Journal Debit Credit 10/01 Record entry Clear entry View general journal b. Assume that on October 1, 2015, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 250,000 kites in three months at a forward exchange rate of $0.70/1 kite. Prepare the journal entries required by this forward contract. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet