Check my work On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $145,800. On January 1, 20x1, the direct exchange rate for the Canadian dollar (C$) was C$1 = $0.81. South Bay's book value on January 1, 20x1, was C$95,000. The fair value of South Bay's plant and equipment was C$9,200 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage value. The remainder of the differential is attributable to a trademark, which will be amortized over 10 years. During 20x1, South Bay earned C$15,000 in income and declared and paid $7,800 in dividends. The dividends were declared and paid in Canadian dollars when the exchange rate was C$1 = $0.75. On December 31, 20X1. Par continues to hold the Canadian currency received from the dividend. On December 31, 20X1, the direct exchange rate is C$1 = $0.64. The average exchange rate during 20X1 was C$1 = $0.76. Management has determined that the Canadian dollar is South Bay's appropriate functional currency Required: c. Prepare a schedule showing the proof of the translation adjustment for South Bay as a result of the translation of the subsidiary's accounts from Canadian dollars to US dollars. Then provide the entry that Par would record for its share of the translation adjustment resulting from the translation of the subsidiary's accounts. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Amounts to be deducted should be entered with a minus sign. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar.) PAR COMPANY AND SUBSIDIARY Proof of Translation Adjustment Year Ended December 31, 20X1 Canadian Dollars Exchange Rate U.S. Dollars Net assets at beginning of year, 1/1/X1 cs 145,800 Adjustment for changes in assets position during year Net income for year Dividends paid Net assets translated at rates in effect for those items S 0 Net assets at end of year c$ 145,800 Change in other comprehensive income - translation adjustment during year -tiet decrease (debit) 0 Journal entry worksheet Record the parent's share (100%) of the translation adjustment from the translation of the subsidiary's accounts on December 31, 20x1. Note: Enter debits before credits. General Journal Event 1 Debit Credit Record entry Clear entry View Sheral journal d. Provide the entry required by Par to restate the C$7,800 in the Foreign Currency Units account into its year-end U.S. dollar- equivalent value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.) Answer is complete but not entirely correct. No Event Debit Credit A 1 General Journal Foreign currency transaction loss Foreign currency units (C$) 913 X 913 x