REFERENCE: Ref.10_02
Darron Co.was formed on January 1,2009 as a wholly owned foreign subsidiary of a U.S.corporation.Darron's functional currency was the stickle (§).The following transactions and events occurred during 2007:
SHAPE \* MERGEFORMAT

-What was the amount of the translation adjustment for 2009?

Question

REFERENCE: Ref.10_02
Darron Co.was formed on January 1,2009 as a wholly owned foreign subsidiary of a U.S.corporation.Darron's functional currency was the stickle (§).The following transactions and events occurred during 2007:
SHAPE \* MERGEFORMAT
 
-What was the amount of the translation adjustment for 2009?

Quizplus · Accepted Answer

To calculate the translation adjustment for 2009, we need to find the difference in the translated value of net assets between the beginning and end of the year. 
Beginning net assets (in §): 750,000 
Ending net assets (in §): 1,100,000

Difference in net assets (in §): 1,100,000 - 750,000 = 350,000

To convert this to USD, we need to divide by the exchange rate at the end of the year: 
350,000 / 1.15 = 304,348

However, we need to subtract the beginning translation adjustment of 2,211 from this amount: 
304,348 - 2,211 = 302,137

Therefore, the answer is B) $302,137 increase in relative value of net assets.

REFERENCE: Ref.10_02 Darron Co.was Formed on January 1,2009 as a Wholly Owned