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Christina Company (a U.S.-based company) has a subsidiary in Canada that began operations at the start of 2020 with assets of 34,000 Canadian dollars (CAD)

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Christina Company (a U.S.-based company) has a subsidiary in Canada that began operations at the start of 2020 with assets of 34,000 Canadian dollars (CAD) and liabilities of CAD 58,000. During this initial year of operation, the subsidiary reported a profit of CAD 28,000. It distributed two dividends, each for CAD 5,200 with one dividend declared on March 1 and the other on October Applicable U.S. dollar (\$) exchange rates for 1 Canadian dollar follow: a. Assume that the Canadian dollar is this subsidlary'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 220,000 in three months at a forward exchange rate of $0.67/CAD1. Prepare the journal entries required by this forward contract. c. Compute the net transiation adjustment the company will report in accumulated other comprehensive income for the year 2020 under this second set of circumstances. ssume that the Canadian dollar is this subsidiary's functional currency. What translation adjustment would the company eport for the year 2020 ? 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 220,000 in three months at a forward exchange rate of $0.67/CAD1. Prepare the journal entries required by this forward contract. (If no entry is required for a transaction/event, sefect "No journal entry required" in the first. account field.) Journal entry worksheet Record the entry for the Board being entered into a forward exchange contract. Note: Enter debits before credits. Journal entry worksheet Record the change in the value of the forward contract. Note: Enter debits before credits. Journal entry worksheet Record the purchase of foreign currency. Note: Enter debits before credits. Journal entry worksheet Record the delivery of the foreign currency and the closing of forward contract account. Note: Enter debits before credits. Compute the net translation adjustment the company will report in accumulated other comprehensive income for the year 2020 under this second set of circumstances

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