End of 20 Section B Calculation & Entries 30 Marks There are 3 questions in this section. All questions are compulsory to be attempted. Question 1 Fluctuations in Currency Exchange Rates [10 marks] Leeds Corporation (U.S.) purchased equipment worth 2 million Euros from Crivello (Italy) at the beginning of the year, 2023. The transaction was denominated in Euros. The exchange rate at that time of invoicing was US$1.23 = 1 Euro. However, due to a stronger economy, the Euros strengthened against the U.S. dollar, resulting in an exchange rate of US$1.31 = 1 Euro at the date of settlement, April 24, 2023. Required: Determine the transaction gain/loss that Leeds Corporation will report in its year-end income statement. [2 marks] Prepare the related journal entries impacting the purchase of equipment by Leeds Corporation. 16 marks] (iii) Discuss if Crivello will report any transaction gain/loss (amount) in its year-end income statement. [2 marks)