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On January 1, 2021, Samuel Co., a U.S. corporation with the U.S. dollar as its functional currency, established Mason Co. as a subsidiary. Mason
On January 1, 2021, Samuel Co., a U.S. corporation with the U.S. dollar as its functional currency, established Mason Co. as a subsidiary. Mason is located in a foreign country, and its functional currency is the Foreign Currency Unit (FCU). Mason engaged in the following transactions during 2021: January 1, 2021 Issued common stock for 600,000 (FCU) June 15, 2021 Sold a patent at a gain of 40,000 (FCU) November 1, 2021 Paid dividends of 60,000 (FCU) Mason's operating revenues and expenses for 2021 were $900,000 and $790,000, respectively. The appropriate exchange rates were: January 1, 2021: June 15, 2021:1 FCU November 1, 2021: 1 FCU $2.60 $2.20 1 FCU $2.70 December 31, 2021:1 FCU Required: $2.50 Calculate the translation adjustment for Mason.
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