Question
On January 1, 2013, Veldon Co., a U.S. corporation with the U.S. dollar as its functional currency, established Malont Co. as a subsidiary. Malont is
On January 1, 2013, Veldon Co., a U.S. corporation with the U.S. dollar as its functional currency, established Malont Co. as a subsidiary. Malont is located in the country of Sorania, and its functional currency is the stickle (). Malont engaged in the following transactions during 2013:
January 1, 2013: Issued common stock for 500,000
July 14, 2013: Sold a patent at a gain of40,000
October 1, 2013: Paid dividends of60,000
Malont's operating revenues and expenses for 2013 were 800,000 and 650,000, respectively. The appropriate exchange rates were:
January 1, 2013: 1 = $2.5
July 14, 2013: 1 = $2.1
October 1, 2013: 1 = $2.6
December 31, 2013: 1 = $2.7
Average, 2013: 1 = $2.4
Calculate the translation adjustment for Malont. (Round your answers to the nearest whole dollar.)
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