Question
Darron Co. was formed on January 1, 2018 as a wholly owned foreign subsidiary of a U.S. corporation. - Darron's functional currency was the stickle
Darron Co. was formed on January 1, 2018 as a wholly owned foreign subsidiary of a U.S. corporation. - Darron's functional currency was the stickle (). - The following transactions and events occurred during 2018: Jan. 1 Darron issued common stock for 1,000,000. June 30 Darron paid dividends of 20,000. Dec. 31 Darron reported net income of 80,000 for the year.
Exchange rates for 2018 were: Jan. 1 $1 = .48 June 30 $1 = .46 Dec. 31 $1 = .42 Weighted average rate for the year $1 = .44
What was the amount of the translation adjustment for 2018? (You must show work to earn points. Write out and label each component.)
| 60,800 decrease in relative value of net assets. | |
| 466,400 increase in relative value of net assets. | |
| 26,000 increase in relative value of net assets. | |
| 61,200 decrease in relative value of net assets. | |
| 60,800 increase in relative value of net assets. |
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