1. Compute Wilsen's exchange gain or loss for 2017 assuming Wilson is considered to be an integrated subsidiary (i.e., the functional currency of the foreign operation is the same as the parent).

2. Translate Wilsen's 2017 Income Statement, Statement of Retained Earnings, and Balance Sheet assuming Wilsen is considered to be an integrated subsidiary (i.e., the functional currency of the foreign operation is the same as the parent).

3. Calculate the exchange gain or loss that would result from the translation of Wilsen's Financial Statements assuming Wilsen was considered to be a self-sustaining foreign operation (i.e., the functional currency of the foreign operation is different than the parent).

4. Translate Wilsen's 2017 Income Statement, Statement of Retained Earnings, and Balance Sheet assuming Wilsen was considered to be a self-sustaining foreign operation (i.e., the functional currency of the foreign operation is different than the parent).

On December 31, 2016, Hilman Enterprises of Montreal paid $12,000,000 for 100% of the outstanding shares of Wilsen Corp of the United States. Wilsen's fair values approximated its book values on that date. Wilsen's comparative balance sheets for 2016 and 2017 are shown below: Balance Sheet as at December 31 (in U.S. Dollars) 2017 Current Monetary Assets $8.000.000 Inventory $2,000,000 Plant and Equipment (Net) $1.500.000 Total Assets $11.500.000 2016 $7.500.000 $3,000,000 $1.800.000 $12.300.000 Current Liabilities Bonds Payable (due Dec 31, 2022) Common Shares Retained Eamings Total Liabilities and Equity $1,100,000 $5,000,000 $4,000,000 $1,400,000 $11,500,000 $2,300,000 $5.000.000 $4.000.000 $1,000,000 $12.300,000 Income Statement for the Year ended December 31, 2017 Sales $5,200,000 Inventory, January 1, 2017 Purchases Inventory, December 31, 2017 Depreciation Expense Other Expenses $3,000,000 $3,000,000 ($2,000,000) $300.000 $400.000 $4.700.000 Net Income $500.000 Other Information: Exchange Rates: December 31, 2016: US $1 = CDN $1.1850 September 30, 2017: US $1 = CDN $1.1975 December 31, 2017: US $1 = CDN $1.20 Average for 2017: US $1 = CDN $1.19 Wilsen paid US$100,000 in dividends on September 30, 2017. The inventories on hand at the end of 2017 were purchased when the exchange rate was US$1 = CDN$1.195. Required