Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please explain through words and calculation 22

please explain through words and calculation 22. Darron Co. was formed on...

80.2K

Verified Solution

Question

Accounting

please explain through words and calculation image
22. Darron Co. was formed on January 1, 2018 as a wholly owned foreign subsidiary of a U.S. corporation. Darron's functional currency was the stickle (8). The following transactions and events occurred during 2018: Jan. 1 June 30 Dec. 31 Darron issued common stock for $1,000,000. Darron paid dividends of $20,000. Darron reported net income of $80,000 for the year. Exchange rates for 2018 were: Jan. 1 June 30 Dec. 31 Weighted average rate for the year $1 = $.48 $1 = $.46 $1 = $.42 $1 = 8.44 What was the amount of the translation adjustment for 2018? 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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students