Boerkian Co. started 2013 with two assets: Cash of 526,000 (Stickles) and Land that originally cost $72,000 when acquired on April 4, 2010. On May 1, 2013, the company rendered services to a customer for 536,000, an amount immediately paid in cash. On October 1, 2013, the company incurred an operating expense of $22,000 that was immediately paid. No other transactions occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows: April 4, 2010: 51-$0.28 Manuary 1, 2013: 51 - $0.29 May 1, 2013: 51- $0.30 October 1, 2013: 51-$0.31 December 31, 2013: 51-$0.35 ssume that Boerkian was a foreign subsidiary of a U.S. multinational company and the stickle (5) was the functional currency of me subsidiary. Calculate the translation adjustment for 2013.

Boerkian Co. started 2013 with two assets: Cash of 526,000 (Stickles) and Land that originally cost $72,000 when acquired on April 4, 2010. On May 1, 2013, the company rendered services to a customer for 536,000, an amount immediately paid in cash. On October 1, 2013, the company incurred an operating expense of $22,000 that was immediately paid. No other transactions occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows: April 4, 2010: 51-$0.28 Manuary 1, 2013: 51 - $0.29 May 1, 2013: 51- $0.30 October 1, 2013: 51-$0.31 December 31, 2013: 51-$0.35 ssume that Boerkian was a foreign subsidiary of a U.S. multinational company and the stickle (5) was the functional currency of me subsidiary. Calculate the translation adjustment for 2013.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Boerkian Co. started 2013 with two assets: Cash of $26,000 (Stickles) and Land that originally cost $72,000 when acquired on
April 4, 2010. On May 1, 2013, the company rendered services to a customer for 536,000, an amount immediately paid in cash.
On October 1, 2013, the company incurred an operating expense of $22,000 that was immediately paid. No other transactions
occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows:
April 4, 2010: 51 - $0.28
January 1, 2013: 51 - $0.29
May 1, 2013: 51 - $0.30
October 1, 2013: 51 - $0.31
December 31, 2013: 51-$0.35
Assume that Boerkian was a foreign subsidiary of a U.S. multinational company and the stickle (5) was the functional currency of
the subsidiary. Calculate the translation adjustment for 2013.
$ 6,800 positive.
4
O $5,480 positive.
O $4,480 negative.
O $5,800 negative.
O $5,800 positive.

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