Sinkal Co. was formed on January 1, 2013 as a wholly owned foreign subsidiary of a U.S. corporation. Sinkal's functional currency was the stickle (§). The following transactions and events occurred during 2013: What was the amount of the translation adjustment for 2013?

Question

Sinkal Co. was formed on January 1, 2013 as a wholly owned foreign subsidiary of a U.S. corporation. Sinkal's functional currency was the stickle (§). The following transactions and events occurred during 2013:  What was the amount of the translation adjustment for 2013?

Quizplus · Accepted Answer

[§1,000,000 × [$.42 - $.48] ($.06) = ($60,000)] + [§20,000 × [$.42 - $.46] ($.04)] = ($800) = ($60,800) Loss in Relative Asset Value

Sinkal Co Was Formed on January 1, 2013 as a Wholly