Dakota, Inc.owns a company that operates in France.Account balances in francs for the subsidiary are shown below:
Revenues were earned and operating expenses, except for depreciation and supplies used, were incurred evenly throughout the year.No purchases of supplies or plant assets were made during the year.
Required:
A.Prepare a schedule to compute the translation adjustment for the year, assuming the subsidiary's functional currency is the franc.
B.Prepare a schedule to compute the translation gain or loss, assuming the subsidiary's functional currency is the U.S.dollar.

Question

Dakota, Inc.owns a company that operates in France.Account balances in francs for the subsidiary are shown below:  
Revenues were earned and operating expenses, except for depreciation and supplies used, were incurred evenly throughout the year.No purchases of supplies or plant assets were made during the year.
Required:
A.Prepare a schedule to compute the translation adjustment for the year, assuming the subsidiary's functional currency is the franc.
B.Prepare a schedule to compute the translation gain or loss, assuming the subsidiary's functional currency is the U.S.dollar.

Quizplus · Accepted Answer

The Answer of Dakota, Inc.owns a company that operates in France.Account balances in francs for the subsidiary are shown below:  
Revenues were earned and operating expenses, except for depreciation and supplies used, were incurred evenly throughout the year.No purchases of supplies or plant assets were made during the year.
Required:
A.Prepare a schedule to compute the translation adjustment for the year, assuming the subsidiary's functional currency is the franc.
B.Prepare a schedule to compute the translation gain or loss, assuming the subsidiary's functional currency is the U.S.dollar.