Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 153,000 kites (the local currency unit) and liabilities of 96,000. During this initial year of operation, the subsidiary reported a profit of 47,000 kites. It distributed two dividends, each for 7,100 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:

January 1, 2017 (start of business)$0.79March 1, 20170.77Weighted average rate for 20170.76October 1, 20170.75December 31, 20170.74

1. Assume that the kite is this subsidiary's functional currency. What translation adjustment would Board report for the year 2017?
2. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 205,000 kites in three months at a forward exchange rate of $0.75/1 kite. Prepare the journal entries required by this forward contract.

A. Record the entry for the Board being entered into a forward exchange contract 10/01

B. Record the change in the value of the forward contract 12/31

C. Record the purchase of foreign currency 12/31

D. Record the delivery the foreign currency and the closing of foreign contract account 12/31

3.. Compute the net translation adjustment for Board to report in accumulated other comprehensive income for the year 2017 under this second set of circumstances.