Gale Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Gale's functional currency was the stickle (§). The following transactions and events occurred during 2021: Exchange rates for 2021 were: What was the amount of the translation adjustment for 2021?
A) $121,500 increase in relative value of net assets.
B) $121,500 decrease in relative value of net assets.
C) $62,000 decrease in relative value of net assets.
D) $62,000 increase in relative value of net assets.
E) $58,500 increase in relative value of net assets.

Question

Gale Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Gale's functional currency was the stickle (§). The following transactions and events occurred during 2021:  Exchange rates for 2021 were:  What was the amount of the translation adjustment for 2021?
A) $121,500 increase in relative value of net assets. 
B) $121,500 decrease in relative value of net assets. 
C) $62,000 decrease in relative value of net assets. 
D) $62,000 increase in relative value of net assets. 
E) $58,500 increase in relative value of net assets.

Quizplus · Accepted Answer

The Answer of Gale Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Gale's functional currency was the stickle (§). The following transactions and events occurred during 2021:  Exchange rates for 2021 were:  What was the amount of the translation adjustment for 2021?
A) $121,500 increase in relative value of net assets. 
B) $121,500 decrease in relative value of net assets. 
C) $62,000 decrease in relative value of net assets. 
D) $62,000 increase in relative value of net assets. 
E) $58,500 increase in relative value of net assets.

Gale Co Was Formed on January 1, 2021 as a Wholly