On January 1, 2011, Veldon Co., a U.S. corporation with the U.S. dollar as its functional currency, established Malont Co. as a subsidiary. Malont is located in the country of Sorania, and its functional currency is the stickle (§). Malont engaged in the following transactions during 2011:

January 1, 2011 .................. Issued common stock for §500,000

July 14, 2011 ....................... Sold a patent at a gain of §40,000

October 1, 2011 ............................ Paid dividends of §60,000

Malont's operating revenues and expenses for 2011 were §800,000 and §650,000, respectively. The appropriate exchange rates were as follows.

January 1, 2011 ................................... §1 = $2.50

July 14, 2011 ...................................... §1 = $2.10

October 1, 2011 ................................... §1 = $2.60

December 31, 2011 ............................... §1 = $2.70

Average for 2011 ................................. §1 = $2.40

Required:

(a) Calculate Malont's net assets in stickles as of December 31, 2011.

(b) Calculate the translation adjustment for Malont and state whether it is a positive or a negative adjustment (round your answers to the nearest whole dollar).