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 Receivables 30,000 122,500 160,000 255,000 567,500 25,000 147,500 170,000 230,000 572,500 Inventory Property and Equipment, net Total Assets Liabilities and Equity Accounts Payable Long-term debt Common stock 55,000 322,500 115,000 75,000 567,500 75,000 285,000 115,000 97,500 572,500 Retained earnings Total Liabilities and Equity Relevant exchange rates are: January 1, 2015 December 31, 2015 December 31, 2016 September 12, 2015 1=P45 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