On January $1,2023,$ Maple Corp. $($a Canadian company$)$ purchased $80\%$ of Harris Inc, an American company, for US$$50,000.$

Income Statements

Harris's book values approximated its fair values on that date except for plant and equipment, which had a fair value of US$$30,000$

For the year ended December $31,2023$

with a remaining life expectancy of $5$ years. A goodwill impairment loss of US$$1,500$ occurred during $2023.$

Harris's January $1,2023$ balance sheet is shown below $($in U$.$S$.$ dollars$)$:

Other information:

Sales, purchases, and other expenses occurred evenly throughout the year.

Dividends declared and paid December $31,2023.$

Maple uses the cost method to account for its investment in Harris

The following exchange rates were in effect during $2023$:

The financial statements of Maple $($in Canadian dollars$)$ and Harris $($in U$.$S$.$ dollars$)$ are shown below:

Balance Sheets

At December $31,2023$

Required:

a$.$ Compute Harris's exchange gain or loss for $2023$ assuming Harris's functional currency was the Canadian dollar $($i$.$e$.,$ the same

functional currency as the parent$).(8$ marks$)$

b$.$ Translate Harris's $2023$ income statement into Canadian dollars assuming Harris's functional currency was the Canadian dollar

$($i$.$e$.,$ the same functional currency as the parent$).(10$ marks$)$

c$.$ Translate Harris's December $31,2023$ balance sheet into Canadian dollars assuming Harris's functional currency was the

Canadian dollar $($i$.$e$.,$ the same functional currency as the parent$).(10$ marks$)$

d$.$ Prepare Maple's December $31,2023$ consolidated balance sheet assuming Harris's functional currency was the Canadian dollar

$($i$.$e$.,$ the same functional currency as the parent$).(21$ marks$)$

e$.$ Compute Harris's exchange gain or loss for $2023$ assuming Harris's functional currency is the U$.$S$.$ dollar $($i$.$e$.,$ the functional

currency of the foreign subsidiary is different than the parent's functional currency$).(6$ marks$)$

f$.$ Translate Harris's $2020$ income statement into Canadian dollars if Harris's functional currency is the U$.$S$.$ dollar $($i$.$e$.,$ the functional

currency of the foreign subsidiary is different than the parent's functional currency$).(5$ marks$)$