Sinkal Co. was formed on January 1, 2018 as a wholly owned foreign subsidiary of a U.S. corporation. Sinkal's functional currency was the stickle (). The following transactions and events occurred during 2018:

Jan.1Sinkal issued common stock for 1,000,000.June30Sinkal paid dividends of 20,000.Dec.31Sinkal reported net income of 80,000 for the year.

Exchange rates for 2018 were:

Jan.11=$0.42June 301=$0.46Dec.311=$0.48Weighted average rate for the year1=$0.44

What was the amount of the translation adjustment for 2018?

rev: 12_11_2018_QC_CS-151004

Multiple Choice

• $52,000 negative translation adjustment.
• $62,800 negative translation adjustment.
• $62,800 positive translation adjustment.
• $440,000 negative translation adjustment.
• $26,000 positive translation adjustment.