Gale Co Was Formed on January 1, 2021 as a Wholly

question 21

Multiple Choice

Gale Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Gale's functional currency was the stickle (§) . The following transactions and events occurred during 2021: Exchange rates for 2021 were:
What was the amount of the translation adjustment for 2021?

• A)$121,500 increase in relative value of net assets.
• B)$121,500 decrease in relative value of net assets.
• C)$62,000 decrease in relative value of net assets.
• D)$62,000 increase in relative value of net assets.
• E)$58,500 increase in relative value of net assets.

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Definitions:

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply by using the average of the initial and final quantities and prices.

Price Elasticity

A measure in economics indicating how the quantity demanded of a good or service changes in response to a change in its price.

Price Y

Represents the specific market value or cost of a good or service named or implied as "Y."

Perfectly Elastic

Describes a situation in which any small change in the price of a good leads to an infinite change in the quantity demanded or supplied, typically represented by a horizontal line on a graph.