Sendelbach Corporation is a U$.$S$.-$based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto, Canada. Although this wholly$-$owned subsidiary operates primarily in Canada, it engages in some transactions through a branch in Mexico. Therefore, the subsidiary maintains a ledger denominated in Mexican pesos $($Ps$)$ and a general ledger in Canadian dollars $($C$$).$ As of December $31,2024,$ the subsidiary is preparing financial statements in anticipation of consolidation with the U$.$S$.$ parent corporation. Both ledgers for the subsidiary are as follows:

Main Operation$$Canada$$DebitCreditAccounts payable$$C$ $25,650$Accumulated depreciation$35,000$Buildings and equipmentC$ $175,000$Cash$34,000$Common stock$58,000$Cost of goods sold$211,000$Depreciation expense$7,700$Dividends$,4/1/2427,000$Gain on sale of equipment, $6/1/245,800$Inventory$87,000$Notes payable$$due in $202777,000$Receivables$76,000$Retained earnings, $1/1/24143,590$Salary expense$31,000$Sales$320,000$Utility expense$9,800$Branch operation$6,540$TotalsC$ $665,040$C$ $665,040$

Branch Operation$$Mexico$$DebitCreditAccounts payable$$Ps $55,800$Accumulated depreciation$22,800$Building and equipmentPs $48,000$Cash$63,000$Depreciation expense$2,800$Inventory $($beginning$$income statement$)31,000$Inventory $($ending$$income statement$)32,000$Inventory $($ending$$balance sheet$)32,000$Purchases$65,000$Receivables$29,000$Salary expense$9,800$Sales$132,000$Main office$38,000$TotalsPs $280,600$Ps $280,600$

Additional Information

The Canadian subsidiary$$s functional currency is the Canadian dollar, and Sendelbach$$s reporting currency is the U$.$S$.$ dollar. The Canadian and Mexican operations are not viewed as separate accounting entities.

The building and equipment used in the Mexican operation were acquired in $2014$ when the currency exchange rate was C$$0\mathrm{.}17=$ Ps $1.$

Purchases of inventory were made evenly throughout the fiscal year.

Beginning inventory was acquired evenly throughout $2023$; ending inventory was acquired evenly throughout $2024.$

The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$$6,540$ on December $31,2024.$

Currency exchange rates for $1$ Ps applicable to the Mexican operation follow:

Weighted average rate for $2023$C$ $0\mathrm{.}22$January $1,20240\mathrm{.}24$Weighted average rate for $20240\mathrm{.}26$December $31,20240\mathrm{.}27$

The December $31,2023,$ consolidated balance sheet reported a cumulative translation adjustment with a $$44,950$ credit $($positive$)$ balance.

The subsidiary$$s common stock was issued in $2011$ when the exchange rate was $$0\mathrm{.}53=$ C$$1.$

The subsidiary$$s December $31,2023,$ retained earnings balance was C$$143,590,$ an amount that has been translated into US$$65,423.$

The applicable currency exchange rates for $1$ C$ for translation purposes are as follows:

January $1,2024$US$ $0\mathrm{.}70$April $1,20240\mathrm{.}69$June $1,20240\mathrm{.}68$Weighted average rate for $20240\mathrm{.}67$December $31,20240\mathrm{.}65$

Required:

Remeasure the Mexican operation$$s account balances into Canadian dollars. $($Note: Back into the beginning net monetary asset or liability position.$)$

Prepare financial statements $($income statement, statement of retained earnings, and balance sheet$)$ for the Canadian subsidiary in its functional currency, Canadian dollars.

Translate the Canadian dollar functional currency financial statements into U$.$S$.$ dollars so that Sendelbach can prepare consolidated financial statements.