Rome Enterprises, a Subsidiary of La Italia Company Based in New

Multiple Choice

Rome Enterprises, a subsidiary of La Italia Company based in New York, reported the following information at the end of its first year of operations (all in euros) : assets--1,320,000; expenses--340,000; liabilities--880,000; capital stock--80,000, revenues--400,000. 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) $25,200 debit adjustment
B) $34,800 debit adjustment
C) $34,800 credit adjustment
D) $25,200 credit adjustment