Brown Enterprises, a Subsidiary of Biden Company Based in Delaware

Multiple Choice

Brown Enterprises, a subsidiary of Biden Company based in Delaware, reported the following information at the end of its first year of operations (all in British pounds) : assets--483,000; expenses--360,000; liabilities--105,000; capital stock--90,000, revenues--648,000. 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) $34,020 debit adjustment
B) $34,020 credit adjustment
C) $11,520 debit adjustment
D) $11,520 credit adjustment