What was the amount of the translation adjustment

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Reference no: EM13135955

Darron Co. was formed on January 1, 2009 as a wholly owned foreign subsidiary of a U.S. corporation. Darron’s functional currency was the stickle €. The following transactions events occurred during 2007:

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 2009 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 2009?

(a) $293,479 increase in relative value of net assets.

(b) $302,137 increase in relative value of net assets.

(d) $187,418 increase in relative value of net assets.

(e) $270,800 increase in relative value of net assets.

Reference no: EM13135955

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