Multiple Choice
Gale Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Gale's functional currency was the stickle (§) . The following transactions and events occurred during 2021: 
Exchange rates for 2021 were: 
What was the amount of the translation adjustment for 2021?
A) $121,500 increase in relative value of net assets.
B) $121,500 decrease in relative value of net assets.
C) $62,000 decrease in relative value of net assets.
D) $62,000 increase in relative value of net assets.
E) $58,500 increase in relative value of net assets.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: What is a company's functional currency?<br>A) The
Q17: Quadros Inc., a Portuguese firm was acquired
Q18: A foreign subsidiary uses the first-in first-out
Q19: Quadros Inc., a Portuguese firm was acquired
Q20: Ginvold Co. began operating a subsidiary in
Q22: Quadros Inc., a Portuguese firm was acquired
Q23: Ginvold Co. began operating a subsidiary in
Q24: Dilty Corp. owned a subsidiary in France.
Q25: Esposito is an Italian subsidiary of a
Q26: Under the temporal method, retained earnings would