REFERENCE: Ref.10_13 Boerkian Co.started 2008 with Two Assets: Cash of §26,000 (Stickles)and

question 91

Essay

REFERENCE: Ref.10_13
Boerkian Co.started 2008 with two assets: cash of §26,000 (stickles)and land that originally cost §72,000 when acquired on April 4,2004.On May 1,2008,the company rendered services to a customer for §36,000,an amount immediately paid in cash.On October 1,2008,the company incurred an operating expense of §22,000 that was immediately paid.No other transactions occurred during the year.Currency exchange rates were as follows:
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-Assume (1)that Boerkian was a foreign subsidiary of a U.S.multinational company that used the U.S.dollar as its functional currency and (2)that the stickle was the functional currency of the subsidiary.What was the translation adjustment for this subsidiary for 2008?

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Definitions:

Higher Levels

A term indicating advanced stages or degrees of complexity, often used in reference to education, management, or organizational structure.

Management

The process of coordinating and overseeing the work activities of others to achieve organizational goals efficiently and effectively.

Direct Expense

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Sporting Goods Department

A specialized division within a retail store or company focused on the sale and distribution of sports and fitness equipment.