ran Company bought all of a Danish company for 8 million kroner (DKK) on Dec 21, Year 1. On December 21, the exchange rate was $0.70 per DKK. The prucahse price was based on the following assets and liabilities, denominated in DKK. Cash 1,000,000 Inventory 2,000,000 Plant Assets 7,000,000 Note payable (1,800,000) Tran has a 12/31 balance sheet date. On 12/31/Y1, the DKK had appreciated to $0.75. Since the purchase date was so close to the end year, management had given all employees those 10 between the purchase and year-end off for the holidayswhich means no transaction occurred 3-1. If the DKK is the functional currency for the subsidiary, determine the translation adjustment for Trans yearend consolidated financials. Show your work. 3-2. What is the economic relevance of this adjustment in 3-1? 3.3. If the US Dollar is the functional currency, determine the translation adjustment for Trans yearend consolidated financials. Show your work. 3-4. What is the economic relevance of this adjustment in 3-3? 3-5.How can companies protect them selves from having to report large currency translation adjustments