Tokyo Enterprises, a Subsidiary of Worldwide Enterprises Based in Dallas

Multiple Choice

Tokyo Enterprises, a subsidiary of Worldwide Enterprises based in Dallas, reported the following information at the end of its first year of operations (all in yen) : assets--110,000,000; expenses--41,000,000; liabilities--97,500,000; capital stock--5,500,000; revenues--48,000,000. Relevant exchange rates are as follows:

As a result of the translation process, what amount is recorded on the financial statements as the translation adjustment?

A) $21,000 debit adjustment
B) $76,000 debit adjustment
C) $21,000 credit adjustment
D) $76,000 credit adjustment