[danstine99]

Hi. I have been working on this problem for days now and I can not figure out what I am doing wrong. I was wondering if anyone could help me. Here is what the problem says:

Lee acquired aCanadian subsidiary whose sole asset is a piece of land. Lee acquired the subsidiary on 12/31/04 for the exact value of the land, CA $100,000. Lee owns 100% of the subsidiary. Go to www.x-rates.comand use the historic lookup feature to determine the exact exchange rates on12/31/04, 12/31/05, and 12/31/06.

Calculate and journalize the foreign exchange adjustments for 2005, 2006 and 2007 for the Canadian subsidiary.

I have found the exchange rates and at first thought that I would multiply the 100,000 dollar value by the exchange rate to get the USD amount but the professor of my class said that we should divide. He said that the cumulative exchange effect should be 18,106 and I can not get that at all. I am at the point I don't know what else to do. I am attaching what I did first that he said was close but the numbers were off, and then the chart I made to change based off the example he sent me. Any help would be appreciated!