Swire Ltd, Located in Hong Kong, Is a Wholly-Owned Subsidiary of of Plato

Swire Ltd., located in Hong Kong, is a wholly-owned subsidiary of Plato Company, a U.S. company. On January 1, 2020, Plato acquired the voting stock of Swire for HK$100,000. Swire's book value was HK$30,000 at the date of acquisition. The HK$70,000 excess of acquisition cost over book value was allocated entirely to goodwill. Plato Company uses the complete equity method to account for its investment in the subsidiary on its own books. It is now December 31, 2020. Swire's trial balance is shown below. Goodwill impairment during 2020 was HK$5,000.
Exchange rates are as follows:
$\begin{array} { l l } \text { January 1, 2020 } & \$ 0.16 / \text { HK\$ } \\ \text { Average for 2020 } & \$ 0.20 / \text { HK\$ } \\ \text { December 31, 2020 } & \$ 0.25 / \text { HK\$ } \end{array}$

Swire's functional currency is the Hong Kong dollar. Its trial balance at December 31, 2020 is below.

$\begin{array}{|l|r|}\hline & \begin{array}{c}\text { December 31, 2020 } \\\text { Dr (Cr) }\end{array} \\\hline \text { Current assets } & \text { HK\$ 15,000 } \\\hline \text { Plant \& equipment, net } & 500,000 \\\hline \text { Liabilities } & (476,000) \\\hline \text { Capital stock } & (10,000) \\\hline \text { Retained earnings, January 1 } & (20,000) \\\hline \text { Sales revenue } & 1250,000) \\\hline \text { Cost of goods sold } & 120,000 \\\hline \text { Operating expenses } & \text { HK\$ }\quad0\\\hline\end{array}$ Required
a. Calculate Swire's translation gain or loss for 220.
b. Translate Swire's December 31, 2020 trial balance into U.S. dollars.
c. Prepare the journal entries Plato makes on its own books to (1) record the initial investment, (2) recognize Swire's 2020 net income and (3) recognize Swire's other comprehensive income.
d. Present, in journal entry form, the eliminating entries necessary to consolidate the December 31, 2020 trial balances of Plato and Swire.
e. Independently calculate the net amount of the adjustments to other comprehensive income in eliminating entries (R) and (O).