Board Company has a foreign subsidiary that began operations at the start of 2015 with assets of 144,000 kites (the local currency unit) and liabilities of 78,000 kitos. During this initial year of operation, the subsidiary reported a profit of 38,000 Ktes. It distributed two dividends, each for 6,200 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 50.81 0.79 0.78 0.77 0.76 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 sol 170.000 kites in three months at a forward exchange rate of $0.77/1 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 2 3 4 Record the entry for the Board being entered into a forward exchange contract. Ndihmad Type here to search ei 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 170.000 kites in three months at a forward exchange rate of $0.77/1 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 X EX 1 Record the entry for the Board being entered into a forward exchange contract. > 2 Record the change in the value of the forward contract. 3 Record the purchase of foreign currency. 4 Record the delivery of the foreign currency and the closing of forward contract account. Credit Note : = journal entry has been entered Record entry Clear entry View general Journal c. Compute the net translation adjustment for Board to report in Accumulated Other Income for the year 2015 under this second set of circumstances mprehensive Not translation adjustment Type here to search o R