Solution-What is the amount of the translation adjustment

What is the amount of the translation adjustment

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Reference no: EM133075344

Question - On January 1, 2017, DODGE Co. acquired 100% of the common shares of MAZDA Inc. for 2,000,000 foreign currency units (FC). At that time, the net book value and fair value of MAZDA's customer lists were zero and FC100,000, respectively. The customer lists had an estimated useful life of 5 years. DODGE did not own any customer lists. Exchange rates were as follows:

Date	Exchange Rate
January 1, 2017	FC1 = $2.20
December 31, 2017	FC1 = $2.28
Average for year	FC1 = $2.22

Assuming that MAZDA is a foreign operation (self-sustaining subsidiary), what is the amount of the translation adjustment relating to the customer lists that will be reported in DODGE's consolidated financial statements for the year ended December 31, 2017?

Reference no: EM133075344

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What is the amount of the translation adjustment

Reference no: EM133075344

Reference no: EM133075344

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