Sinkal CoWas Formed on January 1,2011 as a Wholly Owned Foreign

Sinkal Co.was formed on January 1,2011 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 2011: $\begin{array}{ll}\text { Jan } 1 & \text { Darron issued common stock for } \S 1,000,000 \\\text { June 30 } & \text { Darron paid dividends of } \S 20,000 \\\text { Dec. 31 } & \text { Darron reported net income of } \S 80,000 \text { for the year. }\end{array}$

$\begin{array}{l}\text { Exchange rates for } 2011 \text { were: }\\\text { Jan. } 1 & \$ 1=\S .48 \\\text { June } 30 & \$ 1=\S .46 \\\text { Dec. 31 } & \$ 1=\S .42 \\\text { Weighted average rate for the year } & \$ 1=\S .44\end{array}$ What was the amount of the translation adjustment for 2011?

A) $52,000 decrease in relative value of net assets.
B) $60,800 decrease in relative value of net assets.
C) $61,200 decrease in relative value of net assets.
D) $466,400 increase in relative value of net assets.
E) $26,000 increase in relative value of net assets.