Problem 4. CC Corp. owns a subsidiary in Japan whose balance sheet in Japanese Yen for the last years follow December 31, 2015 December 31, 2016 Assets Cash and Cash equivalents 30,000 25,000 Receivables 122,500 147,500 Inventory 160,000 170,000 Property and Equipment, net 255,000 230,000 Total Assets 567,500 572,500 Liabilities and Equity Accounts Payable 55,000 75,000 Long-term debt 322,500 285.000 Common stock 115,000 115,000 Retained earnings 75,000 97,500 Total Liabilities and Equity 567,500 572,500 Relevant exchange rates are: January 1, 2015 December 31, 2015 December 31, 2016 September 12, 2015 1=P 45 1 = P 42.50 #1 = P 47.50 #1 =P 40 4. CC formed the subsidiary on January 1, 2015. Income of the subsidiary was earned evenly throughout the years and the subsidiary declared dividends worth 15,000 on September 12, 2015 and none were declared during 2014. How much is the cumulative translation adjustment for 2015? A P568,750 B. P875,000 C. P625,000 D. P1,006,250 Problem 4. CC Corp. owns a subsidiary in Japan whose balance sheet in Japanese Yen for the last years follow December 31, 2015 December 31, 2016 Assets Cash and Cash equivalents 30,000 25,000 Receivables 122,500 147,500 Inventory 160,000 170,000 Property and Equipment, net 255,000 230,000 Total Assets 567,500 572,500 Liabilities and Equity Accounts Payable 55,000 75,000 Long-term debt 322,500 285.000 Common stock 115,000 115,000 Retained earnings 75,000 97,500 Total Liabilities and Equity 567,500 572,500 Relevant exchange rates are: January 1, 2015 December 31, 2015 December 31, 2016 September 12, 2015 1=P 45 1 = P 42.50 #1 = P 47.50 #1 =P 40 4. CC formed the subsidiary on January 1, 2015. Income of the subsidiary was earned evenly throughout the years and the subsidiary declared dividends worth 15,000 on September 12, 2015 and none were declared during 2014. How much is the cumulative translation adjustment for 2015? A P568,750 B. P875,000 C. P625,000 D. P1,006,250