On January 1, 2015, Tradiciones, Inc., established Tradiciones de Mexico, a wholly-owned, self-sustaining Mexican subsidiary with assets valued at 48 million pesos. The peso (P) is the functional currency for Tradiciones de Mexico. The exchange rate at the time that the subsidiary was established was Ps8 per \($1\). On January 2, 2015, after the subsidiary was established, the exchange rate changed to Ps6 per \($1\).

Required

1. What is the amount of total assets that Tradiciones de Mexico will show on its balance sheet in U.S. dollars on January 1, 2015 (before the exchange rate change)?

2. What is the amount of the cumulative foreign currency translation adjustment that Tradiciones, Inc. will report on its balance sheet on January 2, 2015, after the exchange rate change?

3. At December 31, 2015, Tradiciones de Mexico reported the information below. Did the Mexican peso appreciate, remain unchanged, or depreciate against the U.S. dollar?

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In millions of dollars Net income.. Accumulated other comprehensive Income-foreign currency translation adjustment.... Accumulated Common Stock Other Comprehensive Retained Income Earnings Total 100 100 (5) (5)