Monty Enterprises,a Subsidiary of Kerry Company Based in Delaware,reported the Following

question 30

Multiple Choice

Monty Enterprises,a subsidiary of Kerry Company based in Delaware,reported the following information at the end of its first year of operations (all in British pounds) : assets--483,000; expenses--360,000; liabilities--105,000; capital stock--90,000,revenues--648,000.Relevant exchange rates are as follows:

As a result of the translation process,what amount is recorded on the financial statements as the translation adjustment?

• A)$34,020 debit adjustment
• B)$34,020 credit adjustment
• C)$11,520 debit adjustment
• D)$11,520 credit adjustment

---

Definitions:

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can produce given its available resources and technology.

Comparative Advantage

The proficiency of either a person, a company, or a country in crafting a good or providing a service, which comes at a lesser opportunity cost than that offered by rival parties.

Domestic Demand

The total demand for goods and services within a country's borders.