Darron co. was formed on january 1 2011 as a wholly owned, Ask an Expert

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Darron Co. was formed on January 1, 2011 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 2011:

Jan. 1 Darron issued common stock for §1,000,000.
June 30 Darron paid dividends of §20,000.
Dec. 31 Darron reported net income of §80,000 for the year

Exchange rates for 2011 were:
Jan 1 $1 = §.48
June 30 $1 = §.46
Dec. 31 $1 = §.42
Weighted average rate for the year $1 = §.44

What was the amount of the translation adjustment for 2011?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M974186

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