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Question1 On 1 January2020, ABC Ltd, an Australian company, formed a Pacific Island trading company, XYZLtd.ABC Ltdholds100\%ofthesharesinXYZLtd.During2020, the Pacific Island currency("Pi") depreciated significantly because of political instability. ExcerptsfromXYZLtd'sfinancialstatementsat 31December2020areasfollows: The accountant for XYZ Ltd has translated XYZ's income statement into Australian dollarsanddeterminedthatthe $ Abalanceofretainedprofitsat31December2020is $42,000 asshowninthetableabove.NodividendswerepaidorproposedbyShellLtd during the year. Exchangeratesatvariousdatesduring 2020 areas follows: Required: (a) Translate XYZLtd's shareholders' equity at 31 December 2020 into AustraliandollarsinaccordancewithAASB121. Whatisthe $A alance of the foreign currency translation reserve? What is the total \$A balance of shareholders' equity? (3 marks) (b) Provideanindependentcalculationoftheforeigncurrencytranslationgainor loss for 2020 . (2 marks) Question1 On 1 January2020, ABC Ltd, an Australian company, formed a Pacific Island trading company, XYZLtd.ABC Ltdholds100\%ofthesharesinXYZLtd.During2020, the Pacific Island currency("Pi") depreciated significantly because of political instability. ExcerptsfromXYZLtd'sfinancialstatementsat 31December2020areasfollows: The accountant for XYZ Ltd has translated XYZ's income statement into Australian dollarsanddeterminedthatthe $ Abalanceofretainedprofitsat31December2020is $42,000 asshowninthetableabove.NodividendswerepaidorproposedbyShellLtd during the year. Exchangeratesatvariousdatesduring 2020 areas follows: Required: (a) Translate XYZLtd's shareholders' equity at 31 December 2020 into AustraliandollarsinaccordancewithAASB121. Whatisthe $A alance of the foreign currency translation reserve? What is the total \$A balance of shareholders' equity? (3 marks) (b) Provideanindependentcalculationoftheforeigncurrencytranslationgainor loss for 2020 . (2 marks)