Solo Company Limited, located in Mexico City, is a wholly owned subsidiary of Partner Incorporated, a U$.$S$.$ company. At the beginning

of the year. Solo's condensed balance sheet was reported in Mexican pesos $($MXP$)$ as follows:

Assets

$3,495,900$

Liabilities

$2,810,00$

Stockholders?

Equity

$595,$ Bea

During the year, the company earned income of MXP$260,000$ and on November $1$ declared dividends of MXP$155,000.$ The Mexican

peso is the functional currency. Relevant exchange rates between the peso and the U$.$S$.$ dollar follow:

Required:

a$.$ Prepare a proof of the translation adjustment, assuming that the beginning credit balance of the Accumulated Other

Comprehensive Income$-$Translation Adjustment account was $$3,230.$

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

Complete this question by entering your answers in the tabs below.

Prepare a proof of the translation adjustment, assuming that the beginning credit balance of the accumulated other comprehensive income$-$

translation adjustment account was $$3,230.$

Note: Amounts to be deducted should be indicated with a minus sign.