A US Parent Acquired a U Required
A

A U.S. parent acquired a U.K. subsidiary on January 1, 2020. The subsidiary's functional currency is the pound, and its December 31, 2020 trial balance is as follows:
$$\begin{array}{l}\begin{array} { | l | c | } \hline &€ \\& \text { Dr (Cr) } \\ \hline \text { Cash, receivables } & \text { f } 180,000 \\\hline \text { Invento ries, at cost } & 330,000 \\\hline \text { Plant \& equipment, net } & 1,050,000 \\\hline \text { Liabilities } & { [ 720,000 \} } \\\hline \text { Capital stock } & \{ 180,000 \} \\\hline \text { Retained earning s, beg inning } & \{ 480,000 \} \\\hline \text { Dividends } & 120,000 \\\hline \text { Revenues } & \{ 3,000,000 \} \\\hline \text { Expenses } & \underline { 2,700,000 } \\\hline & \underline { \underline { € } }\quad0 \\\hline\end{array}\\\\ \text { Exchange rates } \{ \$ / € \} \text { are: }\\\begin{array} { l r } \text { January } 1,2020 & \$ 1.36 \\\text { Average for } 2020 & 1.34 \\\text { Rate when dividends paid } & 1.31 \\\text { December } 31,2020 & 1.30\end{array}\end{array}$$ Required
a. Calculate the translation gain or loss for 2020.
b. Translate the subsidiary's December 31, 2020 trial balance.