Reference no: EM132901259

Company A is foreign subsidiary of a domestic company and Company A's functional currency is the Euro. On company A's financials / trial balance at the end of year 20X1, they reported total assets of €500,000, total liabilities of €300,000, and total net income of €50,000. The spot rate on 12/31/X0 was €1 = $1.05, the spot rate on 12/31/X1 was €1 = $1.04, and the average rate for 20X1 was €1 = $1.07. The equity accounts on their trial balance translated to a net credit balance of $175,000. Based on this information:

Problem 1: What would the translated balance in U.S. dollars be for total assets? (use negative number if a credit)

Problem 2: What would the translated balance in U.S. dollars be for total liabilities? (use negative number if a credit)

Problem 3: What would the translated balance in U.S. dollars be for total net income (use negative number if a credit)

Problem 4: What would the accumulated translation adjustment be? (use negative number if a credit)