Boerkian Co

question 18

Essay

Boerkian Co. started 2021 with two assets: Cash of §26,000 (Stickles)and Land that originally cost §72,000 when acquired on April 4, 2018. On May 1, 2021, the company rendered services to a customer for §36,000, an amount immediately paid in cash. On October 1, 2021, the company incurred an operating expense of §22,000 that was immediately paid. No other transactions occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows:
Assume that Boerkian was a foreign subsidiary of a U.S. multinational company and the stickle (§)was the functional currency of the subsidiary. Calculate the translation adjustment for this subsidiary for 2021 and state whether this is a positive or a negative adjustment.

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Definitions:

Auscultation of Breath Sounds

The act of listening to the sounds generated by the lungs during breathing, typically using a stethoscope, to identify normal and abnormal respiratory conditions.

Full Respiration

The complete process of inhalation and exhalation, which facilitates oxygen intake and carbon dioxide expulsion from the body.

Stethoscope

A medical device used for listening to the internal sounds of the body, such as the heartbeat and lung sounds, crucial for diagnosing many health conditions.

Postnasal Drip

A condition involving the excessive accumulation of mucus in the back of the throat or nose.