German Subsidiary Accounts Euros ExchangeRate Dollars
Assets 1,000,000 $1.20 $1,200,000
Liabilities 500,000 $1.20 $600,000
Stockholders' equity
Common stock 400,000 $1.35 540,000
Retained earnings 100,000 $1.32 132,000
Accum. other comprehensive income:
Foreign-currency translation adjustment (72,000 )
Total Liabilities & Stockholders' Equity 1,000,000 $1,200,000