wwwwwBrico Enterprises, a U.S. corporation, acquired an 80% interest in Bandar Distributors in June2012 when 1 FC equaled $1.62. Bandar is a foreign corporation whose functional currency is theFC. The condensed pre-closing comparative trial balance for Bandar for the current year endedDecember 31, 2015, is as follows:Current AssetsLong-Lived Assets (net)Other Assets.Cost of SalesOther Expenses.Current LiabilitiesOther Liabilities.Net Sales.Dividends Declared.Common Stock.Retained Earnings (beginning)Total....Debit (Credit)December 31, 2015December 31, 2014165,000 FC185,000 FCL420,000400,000170,000165,000525,000425,000205,000260,000(175,000)(135,000)(125,000)(225,000)(820,000)25,000(100,000)(290,000)(865,000)30,000(100,000)(140,000)00Dividends are declared on March 1 of each year and are paid on March 31 of that year. Thetranslated balance in retained earnings at the beginning of 2014 was $227,300.1. Determine the balance in the cumulative translation adjustment account as of December 31,2015. (13 POINTS)ParticularsDebit (Credit)December 31, 20151FCDebit (Credit)December 31,2015

1. **Understand Functional Currency and Reporting Currency**: Bandar Distributors operates in a…

Answered: wwwww Brico Enterprises, a U.S.…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 26P

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