Green Corporation, a Wholly Owned British Subsidiary of a U

question 39

Essay

Green Corporation, a wholly owned British subsidiary of a U.S.firm began the year with 1,300,000 British pounds in net assets.The subsidiary incurred a 65,000 British pound net loss for 2016.The subsidiary issued common stock for 100,000 British pounds on November 15, 2016.Assume the following exchange rates for 2016:
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$$\begin{array} { l r } \text { Date } & \text { B British pound equal to } \\ \text { January } 1,2016 & \$ 1.10 \\\text { November } 15,2016 & \$ 1.15 \\\text { December } 31,2016 & \$ 1.13 \\\text { 2016 average } & \$ 1.14\end{array}$$ Required:
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Compute the translation adjustment for 2016 using the direct method.

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Definitions:

Civil Rights Act

The Civil Rights Act is landmark legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin.

Transfer Title

The process of legally transferring ownership of property from one party to another.

Land

Land refers to the surface of the earth, extending downward to the center of the earth and upward to the airspace above, including the natural resources and physical features associated with it.

Delivery

The act of transferring an item from one party to another, often implying the transfer of ownership or the fulfillment of an obligation.