A) In November 2019, Yahtzee Inc. purchased inventory for US $200,000 when the exchange rate as US $1=CDN $1.25. At December 31 year-end, the inventory had a market value of US $210,000 and the exchange rate was US $1 = CDN $1.18. What will be the total gain (loss) on this inventory for 2019? (2 marks)

Questions B and Care based on the following information:

On April 1, 2019, Onyx Inc., a Canadian public company, issues 1,250,000 in long-term debt to lenders in the Italy. The debt pays interest at an annual rate of 12 percent, with payments due on March 31 of each year. The debt matures on March 31, 2024. Onyx closes its books on December 31 and prepares its financial statements in Canadian dollars. As a consequence all amounts relating to this debt must be translated. Relevant exchange rates are as follows:

April 1, 2019 1 = C$2.38

December 31, 2019 1 = C$2.32

April 1, 2020 1 = C$2.34

July 1, 2020 1 = C$2.36

October 1, 2020 1 = C$2.38

December 31, 2020 1 = C$2.40

B. Determine the Interest Expense relating to the long-term debt that will be reported in Onyx Income Statement for the year ending December 31, 2019 would be. (2 marks)

C. How much foreign Exchange Gain (Loss) on the long-term debt that would be reported in Onyx Income Statement for the year ending December 31, 2020. (2 marks)

Questions D and Eare based on the following information:

Eclipse owns 80% of the common shares of Tikal and 40% of the common shares of Razzia. In addition, Tikal owns 15% of the common shares of Razzia.

D.. Based strictly on its share ownership, what best represents Eclipses relationship to Razzia?

(1 mark)

E. On Eclipses separate entity financial statements, what percentage of Razzias income would flow to Eclipse under the equity method of accounting? (1 mark)

Questions F through Gare based on the following information:

Use the following information forparts F to G. The following amounts (stated in millions) are to be used to determine which segments are reportable.

Revenues Revenues Operating

Segment Interdivision External Total Profit/(Loss) Assets

A 100 900 1,000 250 2,600

B 0 600 600 50 4,000

C 460 1,540 2,000 (60) 1,200

D 300 200 500 40 5,600

E 40 760 800 (240) 14,000

F 200 1,600 1,800 210 2,000

G 300 0 300 30 2,000

H 500 1,200 1,700 180 7,500

I 100 800 900 40 3,300

Total 2,000 7,600 9,600 500 42,200

F. Using only the operating profit test, which of the operating segments would be reportable?

(1 mark)

G. Using all of the tests for reporting operating segments in Section 1701 of the CPA Handbook, which operating segments would qualify as reportable segments? (1 mark)