Measurement of the translation adjustment and hedging an investment. Brico Enterprises, a U.S. corporation, acquired an 80% interest in Bandar Distributors in June 2012 when 1 FC equaled $1.62. Bandar...

Measurement of the translation adjustment and hedging an investment. Brico Enterprises, a U.S. corporation, acquired an 80% interest in Bandar Distributors in June 2012 when 1 FC equaled $1.62. Bandar is a foreign corporation whose functional currency is the FC. The condensed preclosing comparative trial balance for Bandar for the current year ended December 31, 2015, 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 2014 was $227,300.

1. Determine the balance in the cumulative translation adjustment account as of December 31, 2015.

2. Determine how much of the cumulative translation adjustment balance as of December 31, 2015, is traceable to the years prior to 2015.