Hamilton Company (a U.S. based company) acquired 100% of a Swiss company, Franco AG, for 8.2 million Swiss francs on December 30, Year 1. At the date of acquisition, the exchange rate was $0.70 per franc. The acquisition price is attributable to the flowing assets and liabilities denominated in Swiss francs: Common Stock 8,200,000 Cash Inventory (@cost) Fixed Assets Notes Payable 1,000,000 2,000,000 7,000,000 (1,800,000) Hamilton Corporate prepares consolidated financial statements on December 31, Year 1. By that date, the Swiss franc appreciated to $0.75. Because of the year-end holidays, no transactions took place between the date of acquisition and the end of the year. Assignment: 1. Determine the translation adjustment to be reported on Hamilton's December 31, Year 1 consolidated financial statements, assuming that the Swiss franc is the Swiss subsidiary's functional currency. Where would the adjustment be located in the financial statements? 2. Determine the translation adjustment to be reported on Hamilton's December 31, Year 1 consolidated financial statements, assuming that the U.S. dollar is the Swiss subsidiary's functional currency. Where would the adjustment be located in the financial statements? Hamilton Company (a U.S. based company) acquired 100% of a Swiss company, Franco AG, for 8.2 million Swiss francs on December 30, Year 1. At the date of acquisition, the exchange rate was $0.70 per franc. The acquisition price is attributable to the flowing assets and liabilities denominated in Swiss francs: Common Stock 8,200,000 Cash Inventory (@cost) Fixed Assets Notes Payable 1,000,000 2,000,000 7,000,000 (1,800,000) Hamilton Corporate prepares consolidated financial statements on December 31, Year 1. By that date, the Swiss franc appreciated to $0.75. Because of the year-end holidays, no transactions took place between the date of acquisition and the end of the year. Assignment: 1. Determine the translation adjustment to be reported on Hamilton's December 31, Year 1 consolidated financial statements, assuming that the Swiss franc is the Swiss subsidiary's functional currency. Where would the adjustment be located in the financial statements? 2. Determine the translation adjustment to be reported on Hamilton's December 31, Year 1 consolidated financial statements, assuming that the U.S. dollar is the Swiss subsidiary's functional currency. Where would the adjustment be located in the financial statements