Solo Co. Ltd. located in Mexico City is a wholly owned subsidiary of Partner Inc., a U.S. company. At the beginning of the year, Solo's condensed balance sheet was reported in Mexican pesos (MXP) as follows: Assets 3,435,000 Liabilities 2,880,000 Stockholders' Equity 555,000During the year, the company earned income of MXP300,000 and on November 1 declared dividends of MXP155,000. The Mexican peso is the functional currency. Relevant exchange rates between the peso and the U.S. dollar follow: January 1 (beginning of year) $ 0.0870 Average for year 0.0900 November 1 0.0915 December 31 (end of year) 0.0930 Required:a.

I need to find out:

proof of the translation adjustment, assuming that the beginning credit balance of the accumulated other comprehensive income?translation adjustment account was $3,250. (Amounts to be deducted should be indicated with a minus sign.)

8 Assets 3,435,000 Liabilities 2, 880,060 Stockholders' Equity 555,090 12.5 points During the year, the company earned income of MXP300,000 and on November 1 declared dividends of MXP155,000 peso is the functional currency. Relevant exchange rates between the peso and the U.S. dollar follow: January 1 (beginning of year) $0. 0870 Average for year 0. 0900 November 1 0.0915 December 31 (end of year) 9. 0930 Required: a. Prepare a proof of the translation adjustment, assuming that the beginning credit balance of the accumulated other c income-translation adjustment account was $3,250. (Amounts to be deducted should be indicated with a minus sign X Answer is complete but not entirely correct. SOLO CO. LTD. Proof of Translation Adjustment Year Ended December 31 Translation MXP Rate $ Net assets at beginning of year 555,000 $ 0.0870 48,285 Adjustment for changes in net assets position during year: Net income for year 300,000 $ 0.0900 27,000 Dividends (155,000)$ 0.0915 (14, 183) Net assets translated at: Rates during year 61, 102 x Rates at end of year 700,000 $ 0.0930 65, 100 Change in other comprehensive income-translation adjustment during year (net increase 3,998 Accumulated other comprehensive income- translation adjustment, 1/1 (credit) 61,102 x Accumulated other comprehensive income- translation adjustment, 12/31 (credit) 65, 100