Yang Corporation starts a foreign subsidiary on January $1$ by investing $25,000$ rand. Yang owns all of the shares of the subsidiary's common stock. The foreign subsidiary generates $50,000$ rand of net income throughout the year and pays no dividends. The rand is the foreign subsidiary's functional currency. Currency exchange rates for $1$ rand are as follows:

January $1$

Average for the year

December $31$

$$0\mathrm{.}25=1$ rand

$0\mathrm{.}28=1$ rand

$0\mathrm{.}31=1$ rand

Required:

In preparing consolidated financial statements, determine the translation adjustment that Yang Corporation will report at the end of the current year.

Translation adjustment