Darron Co. was formed on January 1, 2018 as a wholly owned foreign subsidiary of a U.S. corporation. Darron's functional currency was the stickle (§). The following transactions and events occurred during 2018: Jan. 1Darron issued common stock for §1,000,000.June 30Darron paid dividends of §20,000.Dec. 31Darron reported net income of §80,000 for the year.??Exchange rates for 2018 were:? Jan.1§1=$0.48June 30§1=$0.46Dec.31§1=$0.42Weighted average rate for the year§1=$0.44?What was the amount of the translation adjustment for 2018?
A. $60,800 decrease in relative value of net assets.
B. $466,400 increase in relative value of net assets.
C. $52,000 decrease in relative value of net assets.
D. $26,000 increase in relative value of net assets.
E. $61,200 decrease in relative value of net assets.
Answer: A
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