Sinkal CoWas Formed on January 1,2018 as a Wholly Owned Foreign

Multiple Choice

Sinkal Co.was formed on January 1,2018 as a wholly owned foreign subsidiary of a U.S.corporation.Sinkal's functional currency was the stickle (§) .The following transactions and events occurred during 2018:
$\begin{array}{ll}\text { Jan. } 1 & \text { Sinkal issued common stock for } \$ 1,000,000 . \\\text { June } 30 & \text { Sinkal paid dividends of } \S 20,000 . \\\text { Dec. } 31 & \text { Sinkal reported net income of } \S 80,000 \text { for the year }\\\\ \text { Exchange rates for } 2018 \text { were: }\\\text { Jan. } 1 & \S 1=\$ .42 \\\text { June } 30 & \S1=\$ .46 \\\text { Dec. } 31 & \S 1=\$ .48 \\\text { Weighted average rate for the year } & \$ 1=\$ .44 \end{array}$

What was the amount of the translation adjustment for 2018?

A) $52,000 decrease in relative value of net assets.
B) $60,400 decrease in relative value of net assets.
C) $60,400 increase in relative value of net assets.
D) $440,000 decrease in relative value of net assets.
E) $26,000 increase in relative value of net assets.