b) Antonio, a company operating in Italy, is a wholly owned subsidiary of Plane Ltd, a company listed in Australia. Plane Ltd formed Antonio on 1 July 2015 with an investment of A$310,000. Antonio's records and financial statements are prepared in Italian Lira (IT L). Antonio has prepared the following financial information at 30 June 2016. Antonio Statement of Profit or Loss and Other Comprehensive Income Sales revenue for the year ended 30 June 2016 IT L IT L 700 000 Antonio. Statement of Financial Position As at 30 June 2016 Total non-current assets Total assets Current assets:: Deposits Monetary assets Total current assets Non-current assets: Land-acquired 1/7/15 Buildings-acquired 1/11/15 Plant and equipment - acquired 1/11/15 Accumulated Depreciation Deferred tax asset IT L 210 000 230 000 440 000 100 000 120 000 110 000 (10000) 10.000 330 000 770 000 Additional information Expenses: Selling Depreciation Interest 320 000 20 000 20 000 Other 190 000 550 000 Profit before income tax 150 000 Income tax expense 60 000 Profit for the period 90.000 I. Exchange rates over the period 1 July 2015 to 30 June 2016 were: IT L AS 1 July 2015 1.00 1.00 1 October 2015 1.00 0.95 1 November 2015 1.00 0.90 Current liabilities: 1 January 2016 1.00 0.85 30 June 2016 1.00 0.75 Current tax liability 70 000 Borrowings Average rate for year 1.00 0.85 50 000 Payables 100 000 Average rate for final quarter 1.00 0.77 Total current liabilities 220 000 Non-current liabilities: Borrowings 150 000 Total liabilities 370 000 Net assets 400 000 Equity: Share capital 310 000 Retained earnings 90 000 Total equity 400 000 II. Revenues and expenses are spread evenly throughout the year Required: The functional currency of Antonio is Italian Lira and the presentation currency is Australian dollars. Translate the financial statements of Antonio. into the functional currency. You are expected to provide the relevant journal entries and a set of Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive Income presented in the functional currency. (18 marks)