Complete tasks (a) and (b) to determine consolidated net income and consolidated stockholders equity if the exchange rate had remained at $1.60/ over the period 2019 to 2020.

On January 1, 2019, Parker, Inc., a U.S.-based firm, acquired 100 percent of Suffolk PLC located in Great Britain for consideration paid of 52,000,000 British pounds ( ), which was equal to fair value. The excess of fair value over book value is attributable to land (part of property, plant, and equipment) and is not subject to depreciation. Parker accounts for its investment in Suffolk at cost. On January 1, 2019, Suffolk reported the following balance sheet: Suffolk's 2019 income was recorded at 2,000,000. It declared and paid no dividends in 2019. On December 31, 2020, two years after the date of acquisition, Suffolk submitted the Page537 following trial balance to Parker for consolidation: Other than paying dividends, no intra-entity transactions occurred between the two companies. Relevant U.S. dollar exchange rates for the British pound follow: The December 31, 2020, financial statements (before consolidation with Suffolk) follow. Dividend income is the U.S. dollar amount of dividends received from Suffolk translated at the $1.65/ exchange rate at January 30,2020. The amounts listed for dividend income and all affected accounts (i.e., net income, December 31 retained earnings, and cash) reflect the $1.65/ exchange rate at January 30, 2020. Credit balances are in parentheses. Parker Sales Cost of goods sold Depreciation Other expenses $(70,000,000) 34,000,000 20,000,000 6,000,000 Dividend income Net income Retained earnings, 1/1/20 $(48,000,000)$(12,887,500)(2,887,500) Net income, 2020 (12,887,500) Dividends, 1/30/20 Retained earnings, 12/31/20 Cash Accounts receivable Inventory 10,000,000 Investment in Suffolk Plant and equipment (net) 30,000,000 Accounts payable 83,200,000 Long-term debt 105,000,000 Common stock (25,500,000) Retained earnings, 12/31/20 (50,000,000) (100,000,000) (56,387,500) Parker's chief financial officer (CFO) wishes to determine the effect that a change in the value of the British pound would have on consolidated net income and consolidated stockholders' equity. To help assess the foreign currency exposure associated with the investment in Suffolk, the CFO requests assistance in comparing consolidated results under actual exchange rate fluctuations with results that would have occurred had the dollar value of the pound remained constant or declined during the first two years of Parker's ownership. a. Translate Suffolk's December 31,2020 , trial balance from British pounds to U.S. dollars. The British pound is Suffolk's functional currency. b. Prepare a schedule that details the change in Suffolk's cumulative translation adjustment (beginning net assets, income, dividends, etc.) for 2019 and 2020