Average for Year $6$

Spruce paid US $$100,000$ in dividends on September $30,2020.$ The

inventories on hand at the end of Year $6$ were purchased

exchange rate was US$$1=$ CDN$$1\mathrm{.}195.$

Required:

a$.$ Compute Spruce's exchange gain or loss for Year $6$ if their

functional currency is the same as Poplar's functional currency $($i$.$e$.,$

the Canadian dollar$).(10$ marks$)$

b$.$ Translate Spruce's Year $6$ Income Statement if their functional

currency is the Poplar's $($i$.$e$.,$ the Canadian dollar$).$ Separately

show your clearly labelled calculations for cost of goods sold for

possible part marks. $(8$ marks$)$