Maple Limited $($Maple$)$ was incorporated on January $2,$ Year $1,$ and commenced active operations immediately in Greece. Common shares were issued on the date of incorporation for $100,000$ euros $(),$ and no more common shares have been issued since then.

On December $31,$ Year $4,$ the Oak Company $($Oak$)$ purchased $100\%$ of the outstanding common shares of Maple. The balance sheet for Maple at December $31,$ Year $10,$ was as follows:

Cash

$100,000$

Accounts receivable $($see additional information #$1)$

$200,000$

Inventory $($see additional information #$2)$

$300,000$

Equipment$$net $($see additional information #$3)$

$1,100,000$

$1,700,000$

Accounts payable

$250,000$

Bonds payable $($see additional information #$4)$

$700,000$

Common shares

$100,000$

Retained earnings

$650,000$

$1,700,000$

Additional Information

$1.$ The accounts receivable relate to sales occurring evenly throughout the month of December, Year $10.$

$2.$ Maple uses the FIFO method to account for its inventory. The inventory available for sale during the year was purchased as follows:

Date of Purchase

Cost

of Purchase

Exchange

Rate

December $31,$ Year $9$

$100,000$

$1=$ $$1\mathrm{.}56$

March $1,$ Year $10$

$1,000,000$

$1=$ $$1\mathrm{.}60$

November $1,$ Year $10$

$180,000$

$1=$ $$1\mathrm{.}63$

$3.$ The equipment was purchased on May $26,$ Year $4.$

$4.$ The bonds were issued on May $26,$ Year $4,$ to finance the purchase of the equipment.

$5.$ Maple reported net income of $200,000,$ which was earned evenly throughout the year, and paid dividends of $160,000$ on July $1,$ Year $10.$

$6.$ Foreign exchange rates were as follows:

January $2,$ Year $1$

$1=$ $$1\mathrm{.}30$

May $26,$ Year $4$

$1=$ $$1\mathrm{.}40$

December $31,$ Year $4$

$1=$ $$1\mathrm{.}42$

December $31,$ Year $9$

$1=$ $$1\mathrm{.}56$

July $1,$ Year $10$

$1=$ $$1\mathrm{.}61$

Average for Year $10$

$1=$ $$1\mathrm{.}59$

Average for December Year $10$

$1=$ $$1\mathrm{.}64$

December $31,$ Year $10$

$1=$ $$1\mathrm{.}66$

Required:

$($a$)$

Translate the balance sheet of Maple at December $31,$ Year $10,$ into Canadian dollars assuming that Maple's functional currency is the Canadian dollar $($HINT: Use FCT Method$).$ Assume that the translated balance sheet will be consolidated with Oak's balance sheet. For retained earnings, simply use the amount required to balance your balance sheet. $(12$ marks$)$

$($b$)$

Calculate the foreign exchange gain or loss on the bonds payable for the year ended December $31,$ Year $10,$ and state how it would be reported on the year$-$end financial statements. $(3$ marks$)$

$($c$)$

Prepare an independent calculation of the unrealized exchange gains or losses that would be reported in other comprehensive income for Year $10,$ assuming that Maple's functional currency is the euro $($HINT: Use PCT method$).(4$ marks$)$