Sarkozy Enterprises, a Subsidiary of Obama Company Based in New

Multiple Choice

Sarkozy Enterprises, a subsidiary of Obama Company based in New York, reported the following information at the end of its first year of operations (all in French francs) : assets--4,790,000; expenses--6,500,000; liabilities--2,950,000; capital stock--1,200;000, revenues--7,140,000. 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) $1,287 debit adjustment
B) $1,287 credit adjustment
C) $6,080 debit adjustment
D) $6,080 credit adjustment