Elan, a U.S. corporation, completed the December 31, 20X8, foreign currency translation of its 70 percent owned Swiss subsidiary's trial balance using the current rate method. The translation resulted in a debit adjustment of $25,000. The subsidiary had reported net income of 800,000 Swiss francs for 20X8 and paid dividends of 50,000 Swiss francs on September 1, 20X8. The translation rates for the year were: ?January 1, 20X8$0.55=1 franc September 1, 20X8$0.59=1 franc Average for 20X8$0.57=1 franc The January 1 balance of the Investment in the Swiss subsidiary account was $1,600,000. Elan acquired its interest in the Swiss subsidiary at book value with no differential or goodwill recorded at acquisition.Elan's Investment in Swiss subsidiary account at December 31, 20X8, is:
A. $1,881,050.
B. $1,923,950.
C. $2,051,500.
D. $1,916,050.
Answer: A
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