Please use the following information to answer question $2.$

Consolidated Motors is a U$.$S$.-$based corporation that sells mechanical engines and components used by electric utilities. Its Canadian subsidiary, Consol$-$Can, operates solely in Canada. It was created on $31$ December $20$X$6$ and

Consolidated Motors determined at that time that it should use the U$.$S$.$ dollar as its functional currency.

Chief Financial Officer Monica Templeton was asked to explain to the Board of Directors how exchange rates affect the financial statements of both Consol$-$Can and the consolidated financial statements of Consolidated Motors. For the presentation, Templeton collects Consol$-$Can's balance sheets for the years ended $20$X$6$ and $20$X$7($Exhibit $1),$ as well as relevant exchange rate information $($Exhibit $2).$

$\backslash$table$[[$EXHIBIT $1,\backslash$table$[[$Consol$-$Can Condensed Balance Sheet$],[$Fiscal Years Ending $31$ December$],[($Canadian $$,$ in Millions$)]],],[$Account$,207,206$