A US-Owned Foreign Subsidiary Has the Following Beginning and Ending Stockholders

question 69

Essay

A U.S.-owned foreign subsidiary has the following beginning and ending stockholders' equity for 2016:
?
?
$\begin{array}{lrlrl}&\text { January } 1 && \text { December } 31\\\text { Common stock } & 120,000 & \text { FC } & 140,000 & \text { FC } \\\text { Paid-in capital in excess of par } & 30,000 & & 40,000 & \\\text { Retained earnings } & 60,000 & & 100,000 & \\& \underline{210,000} & \text { FC } & \underline{280,000} & \text { FC }\end{array}$
The change in common stock resulted from a sale of stock to the parent firm on May 15.The change in retained earnings resulted from a July 1 dividend of 10,000 FC and net income for 2016.Various exchange rates were as follows:
?
?
$$\begin{array} { l r } \text { Date } & \text { 1 FC equal to } \\\text { January } 1,2016 & \$ 1.10 \\\text { May } 15,2016 & \$ 1.12 \\\text { July } 1,2016 & \$ 1.13 \\\text { December } 31,2016 & \$ 1.15 \\\text { 2016 average } & \$ 1.125\end{array}$$ Required:
?
Compute the 2016 translation adjustment for the foreign subsidiary.

---

Definitions:

Youngest

This term refers to the most recently formed or last in a sequence, often used in contexts related to geologic formations or the age of geological layers.

Plutoid

A class of dwarf planet farther from the Sun than the orbit of Neptune.

Orbited

Describes the path one object takes around another object due to the gravitational forces between them, commonly used in the context of planets and satellites.

Solar Wind

Solar Wind is a stream of charged particles, including electrons and protons, ejected from the upper atmosphere of the sun, affecting the entire solar system.