BUSI 4424 - Advanced Accounting II Assignment 2 - Due February 14, 2021, by 11:59PM Question 1 Translating Financial Statements The financial statements of Aubois Corporation of France, as at December 31, Year 20, follow the Additional Information section. Additional Information . On January 1, Year 20, BAC Corporation of British Columbia acquired a controlling interest in Aubois. Relevant exchange rates for France's currency (E) were as follows: 0 January 1, Ycar 20 EI=S 1,44 o December 31, Year 20 El-$ 1.33 o Average for Year 20 El = $ 1.38 The land and building were purchased in Year 12 when the exchange rate was El-S 1.26 During Year 20, equipment costing E 170,000 was purchased for cash. Depreciation totaling T: 40,000 has been recorded on the cquipment. The exchange rate on the date of the equipment purchase was E - 1.42. The remaining equipment had been purchased when Aubois was incorporated in year 9, and no other changes have taken place since that date. Depreciation on the buildings of E 180,000 and depreciation of E 88,000 on all equipment are included in other expenses. The December 31, Year 20, inventory was acquired during the last quarter of the year, when the exchange rate was E = 1.35. On January 1, Year 20, inventory was E 540,000 and was acquired when the rate was E = 1.46. Thc bonds mature on December 31, Ycar 22. Other operating expenses were incurred equally throughout the year. Dividends were declared and paid on December 31, Year 20. On January 1, Year 20, liabilities were greater than monetary assets by the amount of E 2,535,500. The common shares were issued in Ycar I when the exchange rate was E = 1.12. . Financial Statements December 31, Year 20 Balance Sheet E 327,500 E422,000 705,500 815,000 Cash Accounts receivable Inventories - al cost Land Buildings Accumulated depreciation Equipment Accumulated depreciation 2,910,000 3,710,000 800,000 894,500 422,000 472,500 E 5,652,500 Accounts payable Miscellaneous payables Bonds payable Common Shares Retained Tarnings E 485,000 327,500 2,250,000 1.445,000 1,145,000 E 5,652,500 Retained Earnings Balance, January 1 Net income T: 855,000 1.095,000 1,950,000 805,000 E 1,145,000 Dividends Balance, December 31 Income Statement Sales Cost of Sales Other expenses E 6,245,000 3,730,000 1,420,000 5,150,000 E 1,095,000 Net income Required: a. Assume that Aubois's functional currency is the Canadian dollar. Translate the financial statements into Canadian dollars. b. Assume that Aubois's functional currency is the curo (C). Translate the balance sheet only into Canadian dollars