On January 1, 2018, Veldon Co., a U.S. corporation with the U.S. dollar as its...
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Accounting
On January 1, 2018, Veldon Co., a U.S. corporation with the U.S. dollar as its functional currency, established Malont Co. as a subsidiary. Malont is located in the country of Sorania, and its functional currency is the stickle (). Malont engaged in the following transactions during 2018:
1-Jan-18
Issued common stock for 500,000
14-Jul-18
Sold a patent at a gain of 40,000
1-Oct-18
Paid dividends of 60,000
Malont's operations revenues and expenses for 2018 were 800,000
and 800,000 , respectively. The appropriate exchange rates were :
1-Jan-18
1 = $2.5
14-Jul-18
1 = $2.5
1-Oct-18
1 = $2.6
31-Dec-18
1 = $2.7
Average for 2018
1 = $2.4
Required:
Calculate the translation adjustment for Malont. (Round your answers to the nearest whole dollar.)
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