On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 66,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Debit SFr 7,300 Credit 21,500 6,400 28,000 102,000 SFr 10,200 13,700 52,500 66,000 156,000 Cost of Goods Sold 74,000 Depreciation Expense 10,200 Operating Expense 31,000 Dividends Paid 18,000 Total SFr298,400 SFr298,400 Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5,400 payable to SunTime. 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year's depreciation is taken in the year of acquisition. The equipment was acquired on March 1. 4. The dividends were declared and paid on November 1. 5. Exchange rates were as follows: SFr $ January 1 1=0.73 March 1 1=0.74 November 1 1=0.77 December 31 1=0.80 20X1 average 1=0.75 6. The Swiss franc is the functional currency. Required: a. Prepare a proof of the translation adjustment.