On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2014 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 Cash and Receivables 19,600 55,600 Net Property, Plant, and Equipment 40,300 36,500 Totals 59,900 92,100 Accounts and Notes Payable 30,300 32,400 Common Stock 19,900 19,900 Retained Earnings 9,700 39,800 Totals 59,900 92,100 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Revenues 74,800 Operating Expenses including Depreciation of 3,800 francs 29,700 Net Income 45,100 Dividends Declared and Paid 15,000 Increase in Retained Earnings 30,100 Direct exchange rates for Swiss franc are: January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date Dollars per Franc $0.5987 0.5321 0.5654 0.5810 t Prepare a schedule to verify the translation adjustment. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the numer 4 -2.945 or parentheses e.g. (2,945).) Adjustment for Changes in the Net Asset Position During the Year Cumulative Translation Adjustment (debit) Cumulative Translation Adjustment (credit) Dividends Exposed Net Asset Position - 1/1 Exposed Net Asset Position - 12/31 Net Asset Position Translated Using Rate in Effect at Date of Transactions Swiss Francs Translation Rate Net Income Exposed Net Asset Position - 1/1 5987 Adjustment for Changes in the Net Asset Position During the Year Net Income .5654 Dividends .5810 Net Asset Position Translated Using Rate in Effect at Date of Transactions Exposed Net Asset Position - 12/31 .5321 Adjustment for changes in the Net Asset Position During the Year V