On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 72,000. RoadTimes December 31, 20X1, trial balance in SFr is as follows:

	Debit		Credit
Cash	SFr	7,800
Accounts Receivable (net)		24,000
Receivable from Popular Creek		6,900
Inventory		26,500
Plant & Equipment		104,000
Accumulated Depreciation			SFr	12,000
Accounts Payable				12,500
Bonds Payable				54,500
Common Stock				72,000
Sales				152,000
Cost of Goods Sold		72,000
Depreciation Expense		12,000
Operating Expense		34,000
Dividends Paid		15,800
Total	SFr	303,000	SFr	303,000

Additional Information
1.	The receivable from Popular Creek is denominated in Swiss francs. Popular Creeks books show a $5,900 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.

Proof of Translation Adjustment
Net Assets at beginning of year	$52,560
Adjustment for changes in net asset position during year:
Net Income for year	25,500
Dividends paid	-12,166
Net Assets translated at:
Rates during year	$65,894
Rates at end of year	???
Change in other comprehensive income translation adjustment during year net increase
Accumulated other comprehensive income translation adjustment January 1	???
Change in other comprehensive income translation adjustment December 31