Refer to Problem 11-3. All of the facts and data given in the problem are the same.

Question:

Refer to Problem 11-3. All of the facts and data given in the problem are the same. Your answer to Problem 11-3 will be incorporated in the answer to this problem. Kelly Corporation's comparative balance sheets and Year 2 income statement are as follows:

BALANCE SHEET At December 31 Year 2 C$27,472,000 Year 1 Current monetary assets C$26,780,000 Inventory Investment in Ark

BALANCE SHEET At December 31 Year 2 Year 1 Current monetary liabilities C$12,006,000 C$12,582,000 Bonds payable, due Dec

Additional Information:

• Exchange rates

Dec. 31, Year 1 C$1 = US$0.84

Sep. 30, Year 2 C$1 = US$0.82

Dec. 31, Year 2 C$1 = US$0.80

Average for Year 2 C$1 = US$0.83

• Kelly Corporation declared and paid dividends on September 30, Year 2.

• The inventories on hand on December 31, Year 2, were purchased when the exchange rate was C$1 = US$0.81.

• The recoverable amount of Arkenu's goodwill increased during Year 2.

• The Canadian dollar is the functional currency for both Kelly Corporation and Arkenu Company.

Required:

(a) Prepare Kelly Corporation's consolidated financial statements for Year 2 using the Canadian dollar as the presentation currency.

(b) Prepare Kelly Corporation's consolidated financial statements for Year 2 using the US dollar as the presentation currency.

(c) Prepare the consolidated financial statements using the worksheet approach for the two presentation currencies above.

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The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...