35) DNA was incorporated on January 2, 20X0, and commenced active operations immediately. Common shares were issued on the date of incorporation and no new common shares have been issued since then. On December 31, 20X3, INT purchased 70% of the outstanding common shares of DNA for 800,000 Swedish Krona (SEK).

DNA's main operations are located in Switzerland. For the year ending December 31, 20X6, the income statement (in 000s) for DNA was as follows:

SalesSEK1,625

Cost of goods sold(1,200)

Depreciation expense(75)

Income tax expense–current(100)

Net income SEK 250

The comparative and condensed statements of financial position (in 000s) for DNA were as follows:

20X620X5

Accounts receivableSEK400SEK385

Inventory20090

Property, plant, and equipment – net1,7501,825

TotalSEK2,350SEK2,300

Accounts payable SEK 90SEK 85

Other current monetary liabilities200250

Common shares1,2501,250

Retained earnings (Note 3)810715

TotalSEK2,350SEK2,300

OTHER INFORMATION:

•Purchases and sales of merchandise inventory occurred evenly throughout the year.

•The ending inventory was purchased evenly throughout the last month of the year.

•DNA purchased the property, plant, and equipment on hand at the end of 20X6 on March 17, 20X1. There were no purchases or sales of these assets from 20X3 to 20X6.

•Dividends were paid on June 30, 20X6.

Assume that foreign exchange rates were as follows:

January 2, 20X0$1 = SEK 2.30

March 17, 20X1$1 = SEK 2.60

December 31, 20X3$1 = SEK 2.70

Average for 20X5$1 = SEK 2.90

Average for quarter 4 for 20X5$1 = SEK 3.00

Average for December 20X5$1 = SEK 3.10

December 31, 20X5$1 = SEK 3.30

June 30, 20X6$1 = SEK 3.60

Average for 20X6$1 = SEK 3.50

Average for quarter 4 for 20X6$1 = SEK 3.70

Average for December 20X6$1 = SEK 3.80

December 31, 20X6$1 = SEK 3.90

DNA's financial statements need to be translated into Canadian dollars for consolidation with INT's financial statements.

Required:

Calculate the exchange gain/loss on current monetary items for 20X6 under the temporal method.