On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 75,000. RoadTimes December 31, 20X1, trial balance in SFr is as follows:

	Debit		Credit
Cash	SFr	8,400
Accounts Receivable (net)		21,500
Receivable from Popular Creek		5,400
Inventory		25,500
Plant & Equipment		106,000
Accumulated Depreciation			SFr	11,000
Accounts Payable				12,900
Bonds Payable				53,500
Common Stock				75,000
Sales				148,700
Cost of Goods Sold		73,000
Depreciation Expense		11,000
Operating Expense		32,500
Dividends Paid		17,800
Total	SFr	301,100	SFr	301,100

Additional Information
1.	The receivable from Popular Creek is denominated in Swiss francs. Popular Creeks books show a $4,400 payable to RoadTime.
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 years 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.

b.	Where is the translation adjustment reported on Popular Creeks consolidated financial statements and its foreign subsidiary? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers.)

	Cash flow statement

	Statement of financial position

	Income statement

	Statement of comprehensive income

Statement of retained earning