Due to increasing pressures to expand globally, Pinehurst Corp. acquired a 100% interest in a Loch Lomond Corp., a foreign company, on January 1, 2019. Pinehurst paid 12,000,000 Euros and Loch Lomonds equity consisted of the following:

Common Stock 3,000,000

Paid-in Capital in Excess of Par 2,000,000

Retained Earnings 4,200,000

On the date of acquisition, equipment with a 10-year life was undervalued by 1,000,000. The trial balance for Loch Lomond as of December 31, 2021 appears below:

All amounts in Euros
Cash	2,840,000
Accounts Receivable	3,990,000
Inventory	5,800,000
PP&E (net)	8,200,000
Cost of Goods Sold	7,500,000
Other Expenses	1,200,000
Totals	29,530,000
Accounts Payable	1,080,000
Bonds Payable	4,900,000
Common Stock	3,000,000
Paid-in Capital in Excess of Par	2,000,000
Retained Earnings	8,550,000
Sales Revenue	10,000,000
Totals	29,530,000

Loch Lomond earned 1,750,000 in 2019, 2,600,000 in 2020 and 1,300,000 in 2021 (all amounts in Euros). Loch Lomond does not pay dividends.

Relevant EUR/USD exchange rates are as follows:

1 =

1/1/19 $1.20

2019 average $1.28

1/1/20 $1.25

2020 average $1.30

12/31/20 $1.31

2021Average $1.33

12/31/21 $1.35

Pine hurst has determined that the Euro is the functional currency of Loch Lomond Corp.

Required

1. Determine the AAP in Euros

2. Prepare a translation worksheet for Loch Lomond for 20121

3. Calculate the change in the cumulative translation adjustment account balance in 2019, 2020, and 2021

4. Determine Pine hursts Income from Loch Lomond and OCI Gain/Loss from this investment in 2021 (be sure to specify whether it is an OCI gain or loss)

5. Determine the 12/31/21 balance in Pine hursts Investment in Loch Lomond account