On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 65,000. RoadTimes December 31, 20X1, trial balance in SFr is as follows:

	Debit		Credit
Cash	SFr	8,300
Accounts Receivable (net)		24,000
Receivable from Popular Creek		6,700
Inventory		27,500
Plant & Equipment		107,000
Accumulated Depreciation			SFr	11,500
Accounts Payable				13,800
Bonds Payable				52,000
Common Stock				65,000
Sales				166,600
Cost of Goods Sold		74,000
Depreciation Expense		11,500
Operating Expense		34,500
Dividends Paid		15,400
Total	SFr	308,900	SFr	308,900

Additional Information
1.	The receivable from Popular Creek is denominated in Swiss francs. Popular Creeks books show a $5,700 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. POPULAR CREEK CORPORATION AND SUBSIDIARY Proof of Translation Adjustment Year Ended December 31, 20X1 U.S Dollars Net assets at beginning of year Adjustment for changes in net asset position during year: Net income for year Dividends paid Net assets translated at: Rates during year Rates at end of year Change in other comprehensive income translation adjustment during year net increase Accumulated other comprehensive income translation adjustment January 1 S Change in other comprehensive income translation adjustment December 31 b. Where is the translation adjustment reported on Popular Creek's consolidated financial statements and its foreign subsidiary? (Select all that apply.) Cash flow statement Statement of financial position Income statement Statement of comprehensive income Statement of retained earnings Required: a. Prepare a proof of the translation adjustment. POPULAR CREEK CORPORATION AND SUBSIDIARY Proof of Translation Adjustment Year Ended December 31, 20X1 U.S Dollars Net assets at beginning of year Adjustment for changes in net asset position during year: Net income for year Dividends paid Net assets translated at: Rates during year Rates at end of year Change in other comprehensive income translation adjustment during year net increase Accumulated other comprehensive income translation adjustment January 1 S Change in other comprehensive income translation adjustment December 31 b. Where is the translation adjustment reported on Popular Creek's consolidated financial statements and its foreign subsidiary? (Select all that apply.) Cash flow statement Statement of financial position Income statement Statement of comprehensive income Statement of retained earnings