Pyl acquired all the outstanding capital stock of Soo of London on January 1, 2011, for $800,000 when the exchange rate for British pounds was $1.60 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, 2011, in British pounds and U.S. dollars are summarized as follows British Pounds Exchange Rate U.S. Dollars $80,000 96,000 64,000 1,200,000 $1,440,000 $400,000 240,000 640,000 160,000 $1,440,000 Cash Accounts receivable -net Inventories Equipment 50,000 60,000 40,000 750,000 900,00 250,000 150,000 400,000 00,000 900,000 $1.60 1.60 1.60 1.60 Accumulated depreciation Accounts payable Capital stock Retained earnings $1.60 1.60 1.60 1.60 Exchange rates for 2011 are as follows Current exchange rate, January 1, 2011 Average exchange rate for 2011 Rate for cash dividends Current exchange rate, December 31, 2011 $1.60 1.63 1.62 1.65 Soo's adjusted trial balance in British pounds at December 31, 2011, is as follows: Debits Cash Accounts receivable-net Inventories Equipment Cost of sales Depreciation expense Operating expenses Dividends 20,000 70,000 50,000 800,000 350,000 80,000 100,000 30,000 1,500,000 Credits Accumulated depreciation Accounts payable Capital stock Retained earnings Sales 330,000 70,000 400,000 100,000 600,000 1,500,000 REQUIRED 1. Prepare a translation worksheet to convert Soo's December 31, 2011, adjusted trial balance into U.S dollars 2. Prepare journal entries on Pyl's books to account for the investment in Soo for 20 3. Directly compute the translation gain or loss