Stilton Company $($a U$.$S$.-$based company$)$ has a subsidiary in Canada that began operations at the start of $2024$ with assets of $152,000$ Canadian dollars $($CAD$)$ and liabilities of CAD $94,000.$ During this initial year of operation, the subsidiary reported a profit of CAD $46,000.$ It distributed two dividends, each for CAD $7,000$ with one dividend declared on March $1$ and the other on October $1.$ Applicable U$.$S$.$ dollar $($$$)$ exchange rates for $1$ Canadian dollar follow:

January $1,2024($start of business$)$ $ $0\mathrm{.}78$

March $1,20240\mathrm{.}76$

Weighted average rate for $20240\mathrm{.}75$

October $1,20240\mathrm{.}74$

December $31,20240\mathrm{.}73$

Required:

Assume that the Canadian dollar is this subsidiary$$s functional currency. What translation adjustment would the company report for the year $2024?$

Assume that on October $1,2024,$ Stilton entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, the company agreed to sell CAD $195,000$ in three months at a forward exchange rate of $$0\mathrm{.}74/$CAD $1.$ Prepare the journal entries required by this forward contract.

Compute the net translation adjustment the company will report in accumulated other comprehensive income for the year $2024$ under this second set of circumstances.