a. Please prepare a translation worksheet (P14-3) b. Provide independent proofing for computed translation gain or loss (P14-3). Provide an explanation if necessary. c. Show the computation (including the exchange rate) of Cost of Sales for both P14-3

P 14-3 Translation worksheet, parent accounting 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: British Exchange U.S. Pounds Rate Dollars Cash 50,000 $1.50 $ 75,000 Accounts receivable-net 60,000 1.50 90,000 Inventories 40,000 1.50 60,000 Equipment 750,000 1.50 1.125,000 900,000 $1,350,000 Accumulated depreciation 250,000 $1.50 $ 375,000 Accounts payable 150,000 1.50 225,000 Capital stock 400,000 1.50 600,000 Retained earnings 100,000 1.50 150,000 900,000 $1,350,000 Exchange rates for 2016 are as follows: Current exchange rate, January 1, 2016 Average exchange rate for 2016 Rate for cash dividends Current exchange rate, December 31, 2016 $1.50 1.53 1.62 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