(b) Mr. William is the CEO of Royal Brush of Brazil, the wholly-owned Brazilian subsidiary of U.S.-based Royal Brush Inc. Mr. William's compensation package consists of a salary and bonus. His annual bonus is calculated as a predetermined percentage of the pre-tax annual income earned by Royal Brush of Brazil. An abridged income statement for Royal Brush of Brazil for the year ending 31 December 2020 is as follows (amounts in thousands of Brazilian reals [BRL]): Sales Expenses Pre-tax income BRL20,000 19,000 BRL1,000 After translating the Brazilian BRL income statement into U.S. dollars, the condensed income statement for Royal Brush of Brazil appears as follows (amounts in thousands of U.S. dollars [USS]): Sales Expenses Loss US$6,000 6,600 US$600 Required: (i) Explain how Royal Brush of Brazil's pre-tax income (in BRL) became a U.S. dollar pre-tax loss. (ii) Discuss whether Mr. William should be paid a bonus or not