Christina Company (a U.S.-based company) has a subsidiary in Canada that began operations at the start of 2020 with assets of 147,000 Canadian dollars (CAD) and liabilities of CAD 84.000. During this initial year of operation, the subsidiary reported a profit of CAD 41,000. It distributed two dividends, each for CAD 6,500 with one dividend declared on March 1 and the other on October 1 Applicable US dollar ($) exchange rates for 1 Canadian dollar follow January 1, 2020 (start of business) March 1, 2020 Weighted average rate for 2020 October 1, 2eze December 31, 2020 $0.84 0.82 0.81 0.80 0.79 a. Assume that the Canadian dollar is this subsidiary's functional currency. What translation adjustment would the company report for the year 2020? b. Assume that on October 1, 2020. Christina entered into a forward exchange contract to hedge the net investment in this subsidiary On that date, the company agreed to sell CAD 200,000 in three months at a forward exchange rate of $0.80/CADI Prepare the mal ent es required by this forward contract c. Compute the net translation adjustment the company will report in accumulated other comprehensive income for the year 2020 under this second set of circumstances Required A Required B Required Assume that the Canadian dollar is this subsidiary's functional currency. What translation adjustment would the company report for the year 2020? translation adjustment Required B > Assume that on October 1, 2020, Christina entered into a forward exchange contract to hedge the net investment in that date, the company agreed to sell CAD 200,000 in three months at a forward exchange rate of $0.80/CAD 1. Pre entries required by this forward contract. (If no entry is required for a transaction/event, select "No journal entry re account field.) View transaction list Journal entry worksheet 2 3 Record the entry for the Board being entered into a forward exchange contract. Required A Required B Required c Assume that on October 1, 2020, Christina entered into a forward exchange contract to hedge the net investme that date, the company agreed to sell CAD 200,000 in three months at a forward exchange rate of $0.80/CAD 1 entries required by this forward contract. (If no entry is required for a transaction/event, select "No journal entry account field.) View transaction list Journal entry worksheet Record the change in the value of the forward contract. Required A Required B Required c Assume that on October 1, 2020, Christina entered into a forward exchange contract to hedge the net investme that date, the company agreed to sell CAD 200,000 in three months at a forward exchange rate of $0.80/CAD 1 entries required by this forward contract. (If no entry is required for a transaction/event, select "No journal entr account field.) View transaction list Journal entry worksheet 1 2 4 > Record the purchase of foreign currency Required A Required B Required C Assume that on October 1, 2020, Christina entered into a forward exchange contract to hedge the net investment in this sub that date, the company agreed to sell CAD 200,000 in three months at a forward exchange rate of $0.80/CAD 1. Prepare the entries required by this forward contract. (If no entry is required for a transaction/event, select "No journal entry required account field.) SI Viow transaction list Journal entry worksheet 1 2 3 sy Record the delivery of the foreign currency and the closing of forward contract account: Required A Required B Required Compute the net translation adjustment the company will report in accumulated other comprehensive Income for the year 2020 under this second set of circumstances. net translation adjustment
