Translation into functional currency   LO5 On 1 January 2019, Southern Ltd formed a company, Cross Ltd, in the United States to sell Australian products such as boomerangs and cuddly toy koalas and kangaroos. The initial capital was US$500 000. On 1 February 2019, a lease was signed on a shop for US$20 000, payable on the first day of each month. On 15 February 2019, store furnishings were acquired for US$448 000; these were expected to have a useful life of 4 years. On 10 June 2019, more fittings were acquired at a cost of US$124 000, again with an expected life of 4 years. Additional information • Where non-current assets are acquired during a month, a full month’s depreciation is applied. • The tax rate in the United States is 20%, while the tax rate in Australia is 30%. • The functional currency for Cross Ltd is the Australian dollar. • Exchange rates for the financial year were (A$1 = US$): 1 January 2019 0.60 1 February 0.63 15 February 0.64 10 June 0.66 30 June 0.65 Average for first half year 0.63 30 September 0.66 1 December 0.69 Average for second half year 0.65 31 December 2019 0.70 • Sales in the first half of the year amounted to US$210 000. • Expenses, other than depreciation, leases costs, and purchases in the first half of the year amounted to US$60 000. • Financial information relating to Cross Ltd for the year ended 31 December 2019 is as follows. US$ Sales revenue 680 000 Closing inventories 20 000 Accumulated depreciation — furniture and fittings 120 750 Accounts payable 40 000 Share capital 500 000 1 360 750 Lease expenses 220 000 Purchases 230 000 Inventories 20 000 Other expenses 150 000 Depreciation — furniture and fittings 120 750 Furniture and fittings 572 000 Cash 14 600 Accounts receivable 33 400 1 360 750 Required Translate the financial statements of Cross Ltd into Australian dollars for inclusion in the consolidated financial statements of Southern Ltd at 31 December 2019.