EVA Company was incorporated on January 2, Year 5, and commenced active operations immediately. Ordinary shares were issued on the date of incorporation and no new ordinary shares have been issued since then. On December 31, Year 9, PAL Company purchased 70% of the outstanding ordinary shares of the EVA for 1.9 million euros (€).

 

EVA’s main operations are located in Germany. It manufactures and sells German equipment throughout Europe. PAL acquired control over EVA so that it could utilize EVA’s extensive distribution network. EVA continued to manufacture and sell German equipment. However, it also purchases and sells equipment manufactured by PAL in Canada. EVA has 90 days to pay for its purchases from PAL. During this time, EVA is usually able to resell the equipment in Europe and collect the receivables. EVA did not have to hire additional sales people to sell the product. It built a new distribution centre in Frankfurt. This facility was financed with retained earnings from EVA Company.

 

For the year ending December 31, Year 13, the condensed income statement for EVA was as follows:

 

EVA COMPANY CONDENSED INCOME STATEMENT
Year ended December 31, Year 13
Sales and other revenue	€	5,180,000
Cost of goods sold		2,331,000
Depreciation expense		195,000
Loss on decline in value of inventory		34,000
Other expenses		1,986,000
Total expenses		4,546,000
Net income	€	634,000

 

The condensed balance sheet for EVA was as follows:

 

EVA COMPANY BALANCE SHEET
At December 31, Year 13
Inventory (Note 1)	€	371,600
Property, plant, and equipment (net) (Note 2)		1,950,000
Other assets		2,800,000
Total assets	€	5,121,600
Unearned revenue (Note 3)	€	408,000
Other monetary liabilities		2,800,000
Ordinary shares		100,000
Retained earnings		1,813,600
Total liabilities and shareholders' equity	€	5,121,600

 

Notes and Additional Information

1. At December 31, Year 12, inventory was €348,000. The inventory at the end of Year 12 and Year 13 was purchased evenly throughout the last month of each year. The inventory at December 31, Year 13, had cost EVA €405,600 but had been written down to its net realizable value of €371,600. Purchases and sales of inventory occurred evenly throughout the year.
2. EVA purchased its property, plant, and equipment on March 17, Year 9. There were no purchases or sales of property, plant, and equipment since March 17, Year 9.
3. The unearned revenue represents non-refundable deposits received from customers evenly throughout the last quarter of the year.
4. Foreign exchange rates were as follows:

 

January 2, Year 5	€1	=	$1.95
March 17, Year 9	€1	=	$1.90
December 31, Year 9	€1	=	$1.89
Average for Year 12	€1	=	$1.80
Average for quarter 4 for Year 12	€1	=	$1.79
Average for December Year 12	€1	=	$1.77
December 31, Year 12	€1	=	$1.75
Average for Year 13	€1	=	$1.73
Average for quarter 4 for Year 13	€1	=	$1.72
Average for December Year 13	€1	=	$1.71
December 31, Year 13	€1	=	$1.70

 

Required:

(a) Not available in Connect.

 

(b) Assuming that EVA’s functional currency is the Canadian dollar, calculate the Canadian dollar amount for the following items on EVA’s translated financial statements: (Omit $ sign in your response.)

 

(i)	Cost of goods sold for the year ended December 31, Year 13	$
(ii)	Depreciation expense for the year ended March 17, Year 9	$
(iii)	Inventory at end of year Year 13	$
(iv)	Unearned revenue at end of year Year 13	$
(v)	Ordinary shares at end of year Year 13	$