2) Suntop Corporation is an 80% owned subsidiary of Pentop Corporation, acquired for $ 240,000 on January 1, 2021. (6 Marks)

Investment Cost was equal to book value and fair value.

Suntops net income in 2021 was $ 60,000 and Pentops income, excluding its income from Suntop, was 80,000.

Pentops income includes a $ 12,000 unrealized gain on land that cost $ 42,000 and was sold to Suntop for $ 54,000.

Assume that Suntop sold the land in 2023 for $ 60,000.

Assume Pentop adjust for this transaction in the equity accounts.

Required:

3) Exchange rates change because of a number of economic factors affecting the supply of and demand for a nations currency. What are the factors that cause change in exchanges rates of currency of a country? State and Explain any four of these factors .