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, Solos condensed balance sheet was reported in Mexican pesos (MXP) as follows:

Assets	3,420,000	Liabilities	2,850,000
		Stockholders Equity	570,000

During the year, the company earned income of MXP270,000 and on November 1 declared dividends of MXP160,000. 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. Prepare a proof of the translation adjustment, assuming that the beginning credit balance of the accumulated other comprehensive incometranslation adjustment account was $3,230. (Amounts to be deducted should be indicated with a minus sign.)

b. Did the U.S. dollar strengthen or weaken against the Mexican peso during the year?

multiple choice

• Strengthened

• Weakened