Brico Enterprises, a U.S. corporation, acquired an 80% interest in Bandar Distributors in June 2008 when 1 FC equaled $1.62. Bandar is a foreign corporation whose functional currency is the FC. The condensed pre-closing comparative trial balance for Bandar for the current year ended December 31, 2011, is as follows:

Dividends are declared on March 1 of each year and are paid on March 31 of that year. The translated balance in retained earnings at the beginning of 2010 was $227,300.
1. Determine the balance in the cumulative translation adjustment account as of December 31, 2011.
2. Determine how much of the cumulative translation adjustment balance as of December 31, 2011, is traceable to the years prior to 2011.
3. Given your answer to part (2), verify your answer by using an alternative approach to calculating the amount of the cumulative translation adjustment that is traceable to years prior to 2011.
4. Assume that Brico borrowed 100,000 FC on March 1, 2011, as a hedge against its investment in the subsidiary. Determine how much of the parent€™s interest in the current-year translation adjustment could have been offset by this hedge assuming that the loan remains unpaid as of year-end 2011.
Relevant exchange rates are as follows:

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Debit (Credit) December 31, 2011 Dember 31,2010 165,000 FC 185,000 FC 400,000 165,000 425,000 260,000 (135,000) (225,000) (865,000) Current Assets Long-Lived Assets (net) 420,000 170,000 525,000 205,000 (175,000) (125,000) (820,000 25,000 (100,000 (290,000) 0 Cost of Sales Other Expenses. . Current Liabilities Other Liabilities . .. . Dividends Declared 30,000 (100,000) (140,000) Retained Earnings (beginning).... Total Beginning of 1 FC equals March March 3 e End of Year $1.82 $2.02 ear $1.85 $2.00 verage $1.92 $1.96 $1.95 $1.92 $1.95