At the beginning of 2004, Domo Industries Ltd. obtained a four-year loan of US$200,000 from a bank in New York City. At the time of the loan, the U.S.

dollar was worth C$1.20. At the end of 2004, the exchange rate had changed to US$1.00 = C$1.24. By the end of 2005, the U.S. dollar was worth C$1.30.

During 2005, Domo Industries Ltd. sold goods to a German customer for €400,000. At the time of the sale, the euro was worth C$1.50. The customer paid one-fourth of the amount due later in the year, when the euro was worth C$1.41. By the end of 2005, the euro had declined in value to C$1.35.

Required:
Determine the impact of the transactions described above on Domo Industries’
financial statements for the year ended December 31, 2005.