Green Corporation, a wholly owned British subsidiary of a U.S. firm began the year with 1,300,000 British pounds in net assets. The subsidiary incurred a 65,000 British pound net loss for 20X1. The subsidiary issued common stock for 100,000 British pounds on November 15, 20X1. Assume the following exchange rates for 20X1:
Required:
Compute the translation adjustment for 20X1 using the direct method.

Question

Green Corporation, a wholly owned British subsidiary of a U.S. firm began the year with 1,300,000 British pounds in net assets. The subsidiary incurred a 65,000 British pound net loss for 20X1. The subsidiary issued common stock for 100,000 British pounds on November 15, 20X1. Assume the following exchange rates for 20X1:  
Required:
Compute the translation adjustment for 20X1 using the direct method.

Quizplus · Accepted Answer

The Answer of Green Corporation, a wholly owned British subsidiary of a U.S. firm began the year with 1,300,000 British pounds in net assets. The subsidiary incurred a 65,000 British pound net loss for 20X1. The subsidiary issued common stock for 100,000 British pounds on November 15, 20X1. Assume the following exchange rates for 20X1:  
Required:
Compute the translation adjustment for 20X1 using the direct method.

Green Corporation, a Wholly Owned British Subsidiary of a U