On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 76,000. SunTime's December 31, 20X1, trial balance in SFr is as follows Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information Debit SFr 8,100 21,000 6,200 Credit 27,500 107,000 SFr 11,600 12,500 52,500 76,000 148,600 72,500 11,600 31,500 15,800 SFP 301,200 SFr 301,200 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5,200 payable to SunTime. 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 year's 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: January 1 SFr 1 $0.73 March 1 SFr 1 $ 0.74 November 1 SFr. 1 $0.77 December 31 SFr 1 $0.80 20x1 average SFr 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 Creek's consolidated financial statements and its foreign subsidiary? Complete this question by entering your answers in the tabs below. Required A Required B