Pyl acquired all the outstanding capital stock of Soo of London on January 1, 2016, for $800,000, when the exchange rate for British pounds was $1.50 and Soo's stockholders' equity consisted of £400,000 capital stock and £100,000 retained earnings. Soo's functional currency is the British pound. Balance sheet accounts for Soo at January 1, 2016, in British pounds and U.S. dollars are summarized as follows:

Exchange rates for 2016 are as follows:
Current exchange rate, January 1, 2016 ............. $1.50
Average exchange rate for 2016 ...................... 1.53
Rate for cash dividends ............................... 1.62
Current exchange rate, December 31, 2016 ......... 1.55
Soo's adjusted trial balance in British pounds at December 31, 2016, is as follows:
Debits
Cash .......................................... £20,000
Accounts receivable-net ............... 70,000
Inventories ................................... 50,000
Equipment ................................... 800,000
Cost of sales ................................. 350,000
Depreciation expense ..................... 80,000
Operating expenses ....................... 100,000
Dividends .................................. 30,000
................................................. £1,500,000
Credits
Accumulated depreciation ................... £330,000
Accounts payable ............................. 70,000
Capital stock ................................. 400,000
Retained earnings ............................ 100,000
Sales ........................................... 600,000
................................................... £1,500,000
REQUIRED
1. Prepare a translation worksheet to convert Soo's December 31, 2016, adjusted trial balance into U.S. dollars.
2. Prepare journal entries on Pyl's books to account for the investment in Soo for 2016.
3. Directly compute the translation gain or loss.

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British Pounds Exchange Rate U.S Dollars Cash Accounts receivable-net Inventories Equipment £ 50,000 60,000 40,000 750,000 £900,000 £250,000 150,000 400,000 100,000 £900,000 S1.50 75,000 90,000 60,000 1、125.000 $1,350,000 1.50 375,000 225,000 600,000 150,000 $1,350,000 1.50 1.50 1.50 Accumulated depreciation Accounts payable Capital stock Retained earnings 1.50 1.50 1.50