Calculate the cumulative translation adjustment for this U.S. MNC translating the balance sheet and income statement of a French subsidiary, which keeps its books in euro, but that is translated into U.S. dollars using the current rate method, the reporting currency of the U.S. MNC. The subsidiary is at the end of its first year of operation.The historical exchange rate is $1.60/1.00 and the most recent exchange rate is $1.50/.

	Local Currency				Current Rate
Balance Sheet
Cash			2,100				$	3,150
Inventory (Current Value = 1,800)			1,500				$	2,250
Net fixed assets			3,000				$	4,500
Total Assets			6,600				$	9,900
Current liabilities			1,200				$	1,800
Long-term debt			1,800				$	2,700
Common stock			2,700				$	4,320
Retained earnings			900				$	1,394
CTA
Total L&E			6,600				$	9,900
Income Statement
Sales Revenue			10,000				$	15,484
COGS			7,500				$	11,613
Depreciation			1,000				$	1,548
NOI			1,500				$	2,323
Tax(40%)			600				$	929
Profit after tax			900				$	1,394
Foreign Exchange gain (loss)
Net income			900				$	1,394
Dividends			0				$	0
Addition to Retained Earnings			900				$	1,394