On January 1, 20X4, Alum Corporation acquired DaSilva Company, a Brazilian subsidiary, by purchasing all its common stock at book value. DaSilva€™s trial balances on January 1, 20X4, and December 31, 20X4, expressed in Brazilian reals (BRL), follow:

Additional Information
1. DaSilva uses FIFO inventory valuation. Purchases were made uniformly during 20X4.
Ending inventory for 20X4 is composed of units purchased when the exchange rate was $0.25.
2. The insurance premium for a two-year policy was paid on October 1, 20X3.
3. Plant and equipment were acquired as follows:

Date Cost
January 1, 20X1 ... BRL200,000
July 10, 20X2 .... 50,000
April 7, 20X4 .... 100,000

4. Plant and equipment are depreciated using the straight-line method and a 10-year life, with no residual value. A full month€™s depreciation is taken in the month of acquisition.
5. The intangible assets are patents acquired on July 10, 20X2, at a cost of BRL60,000. The estimated life is five years.
6. The common stock was issued on January 1, 20X1.
7. Dividends of BRL10,000 were declared and paid on April 7. On October 9, BRL15,000 of dividends were declared and paid.
8. Exchange rates were as follows:
BRL $
January 1, 20X1 ..... 1 = 0.45
July 10, 20X2 ...... 1 = 0.40
October 1, 20X3 ..... 1 = 0.34
January 1, 20X4 ..... 1 = 0.30
April 7, 20X4 ...... 1 = 0.28
October 9, 20X4 ..... 1 = 0.23
December 31, 20X4 ....1 = 0.20
20X4 average ...... 1 = 0.25

Required
a. Prepare a schedule translating the December 31, 20X4, trial balance of DaSilva from reals to dollars assuming the real is the functional currency.
b. Prepare a schedule calculating the translation adjustment as of the end of 20X4. The net assets on January 1, 20X4, wereBRL280,000.

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January 1, 20X4 Debit December 31, 20X4 Debit Credit Credit Cash Accounts Receivable (net) Inventories Prepaid Insurance Plant & Equipment Accumulated Depreciation Intangible Assets Accounts Payable Income Taxes Payable interest Payable Notes Payable BRL 62,000 83,900 95,000 5,600 250,000 BRL 57,700 82,000 95,000 2,400 350,000 BRL 67,500 BRL 100,000 42,000 30,000 20,000 30,000 1,000 20,000 24,000 27,000 20,000 January 1, 20X4 Debit December 31, 20X4 Debit Credit Credit Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Sales Cost of Goods Sold Insurance Expense Depreciation Expense Amortization Expense Operating Expense Dividends Paid Total 120,000 80,000 150,000 50,000 120,000 80,000 150,000 500,000 230,000 3,200 32,500 12,000 152,300 25,000 BRL538,500 BRL538,500 BRL1,072,100 BRL1,072,100