Windsor Enterprises, a subsidiary of Kennedy Company based in New York, reported the following information at the end of its first year of operations (all in British pounds): assets--338,000; expenses--360,000; liabilities--101,000; capital stock--80;000, revenues--517,000 . Relevant exchange rates are as follows: On date subsidiary stock was purchased ................ $2.05 Average rate for the
year ............................. 1.84 At year end ........................................... 1.80 As a result of the translation process, what amount is recorded on the financial statements as the translation adjustment?
a. $26,280 debit adjustment
b. $26,280 credit adjustment
c. $6,280 credit adjustment
d. $6,280 debit adjustment
A
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