Marshall Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Marshalls functional currency was the stickle (). The following transactions and events occurred during 2021:

Jan. 1			Marshall issued common stock for 2,000,000.
June 30			Marshall paid dividends of 50,000.
Dec. 31			Marshall reported net income of 120,000 for the year.

Exchange rates for 2021 were:

Jan. 1	$	1	=		0.44
June 30	$	1	=		0.48
Dec. 31	$	1	=		0.50
Weighted average rate for the year	$	1	=		0.46

What was the amount of the translation adjustment for 2021?

rev: 08_27_2020_QC_CS-224517

Multiple Choice

• $119,000 decrease in relative value of net assets.

• $170,000 increase in relative value of net assets.

• $59,000 decrease in relative value of net assets.

• $121,000 increase in relative value of net assets.

• $81,000 increase in relative value of net assets.