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:
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January 1, 2011
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Issued common stock for §500,000
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July 14, 2011
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Sold a patent at a gain of §40,000
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October 1, 2011
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Paid dividends of §60,000
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Malont's operating revenues and expenses for 2011 were §800,000 and §650,000, respectively. The appropriate exchange rates were as follows.
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January 1, 2011
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§1 = $2.50
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July 14, 2011
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§1 = $2.10
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October 1, 2011
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§1 = $2.60
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December 31, 2011
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§1 = $2.70
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Average for 2011
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§1 = $2.40
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Required:
(Show the calculations for the translation adjustment for Malont and state whether it is a positive or a negative adjustment (round your answers to the nearest whole dollar).