On January 1, 20X1, Himalaya Corporation organized Alps Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 120,000. Alps's December 31, 20X1, trial balance in...

On January 1, 20X1, Himalaya Corporation organized Alps Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 120,000. Alps's December 31, 20X1, trial balance in SFr is as follows:

Additional Information

1. The receivable from Himalaya is denominated in Swiss francs. Himalaya's books show a $8,000 payable to Alps.


2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1.


3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year's depreciation is taken in the year of acquisition. The equipment was acquired on March 1.


4. The dividends were declared and paid on November 1.


5. Exchange rates were as follows:

1. The Swiss franc is the functional currency.

Required

(a) Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.

(b) Prepare a proof of the translation adjustment computed