Required:

$($a$)$ Assume that Sub's functional currency is the Canadian dollar:

$($i$)$ Calculate the Year $2$ exchange gain or loss that would result from the translation of

Sub's financial statements. $($Enter answers in whole dollars and not in millions of

dollars. Input all amounts as positive value. Omit currency symbol in your

response.$)$

$($ii$)$ Prepare translated financial statements for Year $2.($Round the values in the "Rate"

column to $2$ decimal places. Exchange gain, if any, should be entered as positive

value, and Exchange loss, if any, should be entered with a minus sign. Enter

answers in whole dollars and not in millions of dollars. Input all other amounts as

positive values. Omit currency symbol in your response.$)($b$)$ Assume that Sub's functional currency is the Bahamian dollar:

$($i$)$ Calculate the Year $2$ exchange gain or loss that would result from the translation of

Sub's financial statements. $($Enter answers in whole dollars and not in millions of

dollars. Input all amounts as positive value. Omit currency symbol in your

response.$)$

$($ii$)$ Prepare translated financial statements for Year $2.($Round the values in the "Rate"

column to $2$ decimal places. Loss amounts should be indicated with a minus sign.

Enter answers in whole dollars and not in millions of dollars. Input all other

amounts as positive values. Omit currency symbol in your response.$)($iii$)$ Calculate the amount of goodwill that would appear on the December $31,$ Year $2,$

consolidated balance sheet if there was an impairment loss of $B$$$50,000$ during the

year. $($Enter answers in whole dollars and not in millions of dollars. Input all other

amounts as positive values. Omit currency symbol in your response.$)$

Goodwill $-$ December $31,$ Year $2$

$($iv$)$ Calculate the amount of the exchange gain or loss that would appear in Main's

Year $2$ consolidated financial statements. $($Enter answers in whole dollars and not in

millions of dollars. Input all amounts as positive value. Omit currency symbol in

your response.$)$On December $31,$ Year $1,$ Main Corporation of Toronto paid $14\mathrm{.}30$ million Bahamian

dollars $($B$$)$ for $100\%$ of the outstanding common shares of Sub Company of Bahamas.

On this date, the fair values of Sub's identifiable assets and liabilities were equal to

their carrying amounts. Sub's comparative balance sheets and Year $2$ income

statement are as follows:

Additional Information

Exchange rates

Sub Company declared and paid dividends on September $30,$ Year $2.$

The inventories on hand on December $31,$ Year $2,$ were purchased when the

exchange rate was $B$$$1=$$$0\mathrm{.}63.$