Saturn Ltd., a Canadian company, purchased 100% of the common shares of a New Zealand company, Tethys Ltd., on December 31, 2012, for NZ$125,000 (New Zealand dollars). The entire purchase discrepancy was attributed to a patent that was not recognized in Tethys's accounts. The patent had a remaining useful life of three years. Tethys's functional currency is the Canadian dollar. Tethys's comparative balance sheet information at December 31, 2012, and 2013, and its income statement for the year ended December 31, 2013, are as follows:

Additional information:
1. Equipment was purchased on April 23, 2013, when the exchange rate was NZ$1 = C$0.72. The equipment cost NZ$50,000.
2. Sales and other expenses occurred evenly throughout the year.
3. A dividend of NZ$4,000 was declared and paid on December 31, 2013.
4. Exchange rates are as follows:
December 31, 2012 .........NZ$1 = C$0.70
December 31, 2013 .........NZ$1 = C$0.76
Average for 2013 .........NZ$1 = C$0.73
5. The account history of property, plant, and equipment (PPE) and accumulated depreciation from December 31, 2012, to December 31, 2013 (in NZ$), was as follows:

Required
(a) Prepare Tethys's 2013 income statement in Canadian dollars (including the exchange difference, if applicable).
(b) Saturn has no patents of its own. Calculate the amount for patent amortization in Saturn's 2013 consolidated income statement and the December 31, 2013, balance in the patent account on Saturn's consolidated balance sheet.
(c) Recalculate the requirements from part (b), assuming that Tethys's functional currency is the New Zealand dollar.

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TETHYS LTD. Balance Sheet December 31, 2013 with comparative figures for 2012 (NZŚ) 2013 2012 Monetary assets Property, plant, and equipment (net) Total assets Liabilities (all monetary) Shareholders' equity Common shares Retained earnings Total liabilities and shareholders' equity $ 78,000 176,000 $254,000 $120,000 80,000 54,000 134,000 $254,000 $55,000 155,000 $210,000 $100,000 80,000 30,000 110,000 $210,000 TETHYS LTD. Income Statement year ended December 31, 2013 (NZS) Revenue Depreciation expense Other expenses Total expenses Net income $285,000 29,000 228,000 257,000 28,000 Accumulated Depreciation December 31, 2012 Accumulated Depreciation December 31, 2013 Depreciation Expense December 31, 2013 Carrying Amount December 31, 2013 Original Cost Relating to PPE owned at December 31, 2012: 270,000 Relating to equipment purchased on April 23, 2013: 50,000 115,000 134,000 19,000 136,000 0 10,000 10,000 40,000