Dove Corporation of Toronto acquired $100\%$ of the outstanding common shares of Astral company of Libya on January $1$ of Year $7.$ On this date, the fair values of Astral company's identifiable assets and liabilities were equal to their carrying amounts. Astral$$s financial statements for the year ended December $31,$ Year $9$ are presented as follows:

BALANCE SHEET

At December $31,$ Year $9$

Cash and cash equivalents LYD $862,600$

Accounts receivable $751,600$

Inventory $899,600$

Plant and equipment $($net$)1,601,600$

LYD $4,115,400$

Accounts payable LYD $806,600$

Notes payable $201,600$

Common shares $1,001,600$

Retained earnings $2,105,600$

LYD $4,115,400$

INCOME STATEMENT

For the year ended December $31,$ Year $9$

Sales LYD $6,207,600$

Inventory, Jan. $11,422,600$

Purchases $3,939,600$

Inventory, Dec. $31(899,600)$

Depreciation expense $201,600$

Other expenses $505,600$

$5,169,800$

Profit LYD $1,037,800$

Additional Information

Exchange rates

January $1,$ Year $7$ LYD$1=$ $$0\mathrm{.}75$

January $1,$ Year $8$ LYD$1=$ $$0\mathrm{.}53$

Average for Year $8$ LYD$1=$ $$0\mathrm{.}55$

Sep. $30,$ Year $9$ LYD$1=$ $$0\mathrm{.}63$

Dec. $31,$ Year $9$ LYD$1=$ $$0\mathrm{.}66$

Average for Year $9$ LYD$1=$ $$0\mathrm{.}59$

Astral Company declared and paid dividends on September $30,$ Year $9.$

The inventories on hand on December $31,$ Year $9,$ were purchased when the exchange rate was LYD$1=$ $$0\mathrm{.}64.$

All inventory on hand at the beginning of Year $9$ were purchased evenly in Year $8.$

The plant and equipment were purchased on January $1,$ Year $8$ and are being amortized on a straight line basis over its estimated useful life of $10$ years.

All sales and purchases and other expenses occurred evenly throughout the year.

On January $1,$ Year $9,$ the retained earnings of Astral Company was LYD $1,964,600$ which amounted to $$1,041,600$ Canadian dollars.

Required:

$($a$)$ Assume that Astral$$s functional currency is the Canadian dollar, prepare translated financial statements for Year $9.($Hint: Prepare the balance sheet first and your retained earnings number will be a plug. Use the translated retained earnings to prepare the retained earnings statement and your profit figure will be a plug.$)($Round the Rate answers to $2$ decimal places. Exchange gain, if any, should be entered as positive value, and Exchange loss, if any, should be entered with a minus sign. Input all other amounts as positive values. Omit currency symbol in your response.$)$

Balance Sheet $-$ December $31,$ Year $9$

Cash and cash equivalents LYD $862,600\backslash$times

$0\mathrm{.}66$

$

$569316$

Accounts receivable $751,600\backslash$times

$0\mathrm{.}66$

$496056$

Inventory $899,600\backslash$times

$0\mathrm{.}64$

$575744$

Plant and equipment $($net$)1,601,600\backslash$times

$0\mathrm{.}53$

$848848$

LYD $4,115,400$ $

$2489964$

Accounts payable LYD $806,600\backslash$times

$0\mathrm{.}66$

$

$532356$

Notes payable $201,600\backslash$times

$0\mathrm{.}66$

$133056$

Common shares $1,001,600\backslash$times

$0\mathrm{.}75$

$751200$

Retained earnings $2,105,600$ Plug

$1073352$

LYD $4,115,400$ $

$2489964$

Retained Earnings Statement $$ Year $9$

Bal. Jan. $1$ LYD $1,964,600$ given $

$1041600$

Net income $1,037,800$ plug

$3,002,400$

Dividends $896,800\backslash$times

$0\mathrm{.}63$

$564984$

Closing retained earnings LYD $2,105,600$ B$/$S above $

Income Statement $-$ Year $9$

Sales LYD $6,207,600\backslash$times

$0\mathrm{.}59$

$

$3662484$

Cost of goods sold $4,462,600$ Note $1$

$2639994$

Depreciation expense $201,600\backslash$times

$0\mathrm{.}53$

$106848$

Other expenses $505,600\backslash$times

$0\mathrm{.}59$

$298304$

Exchange loss

$5,169,800$

Net income

LYD $1,037,800$ $

$($b$)$ Assume that Astral$$s functional currency is the Libyan dinar, prepare translated financial statements for Year $9$ if the translated retained earnings at January $1,$ Year $9$ under the presentation currency translation method is $$1,231,600$ Canadian dollars and there was no prior balance in Accumulated Other Comprehensive Income. $($Hint: Prepare the income statement first and then the statement of retained earnings. Use the translated retained earnings to prepare the balance sheet and the exchange gain or loss in OCI will be a plug.$)($Round the Rate answers to $2$ decimal places. Exchange gain, if any, should be entered as positive value, and Exchange loss, if any, should be entered with a minus sign. Input all other amounts as positive values. Omit currency symbol in your response.$)$

Income Statement $-$ Year $9$

Sales LYD $6,207,600\backslash$times

$

Cost of goods sold $4,462,600\backslash$times

Depreciation expense $201,600\backslash$times

Other expenses $505,600\backslash$times

$5,169,800$

$($Click to select$)$

LYD $1,037,800$ $

Retained Earnings Statement $$ Year $9$

Bal. Jan. $1$ LYD $1,964,600$ given $

Net income $1,037,800\backslash$times

$3,002,400$

Dividends $896,800\backslash$times

Closing retained earnings LYD $2,105,600$ B$/$S above $

Balance Sheet $-$ December $31,$ Year $9$

Cash and cash equivalents LYD $862,600\backslash$times

$

Accounts receivable $751,600\backslash$times

Inventory $899,600\backslash$times

Plant and equipment $($net$)1,601,600\backslash$times

LYD $4,115,400$ $

Accounts payable LYD $806,600\backslash$times

$

Notes payable $201,600\backslash$times

Common shares $1,001,600\backslash$times

Retained earnings $2,105,600$