Dakota, Inc. owns a company that operates in France. Account balances in francs for the subsidiary are shown below: Exchange rates for 2017 were as follows: 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:  Exchange rates for 2017 were as follows:  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:  Exchange rates for 2017 were as follows:  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.