Question
On January 1, 2018, 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, 2018, 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 2018
January 1, 2018 Issued common stock for 500,000
July 14, 2018 Sold a patent at a gain of 40,000
October 1, 2018 Paid dividends of 60,000
Malonts operating revenues and expenses for 2018 were 800,000 and 650,000, respectively.
The appropriate exchange rates were:
date | stickle | us dollars |
1-Jan | 1 | 2.5 |
14-Jul | 1 | 2.1 |
1-Oct | 1 | 2.6 |
31-Dec | 1 | 2.7 |
average 2018 | 1 | 2.4 |
Required:
Calculate the translation adjustment for Malont. (Round your answers to the nearest whole dollar.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started