Robbins Corporation Has a Wholly-Owned Foreign Subsidiary, Bertke, Ltd Robbins Increased Its Investment in Bertke on March 31, 2017

question 27

Multiple Choice

Robbins Corporation has a wholly-owned foreign subsidiary, Bertke, Ltd.Bertke's functional currency is the currency of the country in which it is located.Information extracted from Bertke's financial statements follow: ?
$\begin{array}{lrr}&2017&2016\\\text { Common stock, no par value } & \text { FC 200,000 } & \text { FC 100,000 } \\\text { Retained earnings } & 400,000 & 350,000 \\\text { Net income } & 70,000 & 60,000 \\\text { Dividends (ded ared September 30) } & 20,000 & 10,000\end{array}$ Robbins increased its investment in Bertke on March 31, 2017.Exchange rate information for the period follows:

$\begin{array}{lrr}&2017&2016\\\text { December } 31 & 1 \mathrm{FC}=\$ 2.30 & 1 \mathrm{FC}=\$ 2.10 \\\text { Average } & 2.24 & 2.12 \\\text { March } 31 & 2.15 & 2.08 \\\text { September 30 } & 2.28 & 2.07\end{array}$
The amount of the translation adjustment is:

• A)$108,400
• B)$109,600
• C)$99,000
• D)$108,800

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