Foreign Currency Translation On December 31, 2021, Plato Manufacturing Inc. of Calgary purchased 100% of the outstanding common shares of Socrates Inc. of Los Angeles, California. Socrates' comparative statement of financial position and 2022 income statement are as follows: STATEMENT OF FINANCIAL POSITION At December 31 Plant and equipment (net) Inventory Accounts receivable Cash Common shares Retained earnings Bonds payable-due Dec. 31, Year 6 Current liabilities INCOME STATEMENT For the year ended December 31, 2022 Sales Cost of purchases Change in inventory Depreciation expense Other expenses Profit Additional Information (i) Exchange rates Dec. 31, 2021 Sep. 30, 2022 Dec. 31, 2022 Average, 2022 US$33,000,000 25,740,000 600,000 700,000 4,190,000 31,230,000 US$ 1,770,000 US$1 = US$1 = US$1 = US$1 = C$1.15 C$1.05 C$1.07 C$1.08 2022 2021 US$ 6,630,000 US$ 7,330,000 5,730,000 6,330,000 6,130,000 4,730,000 810,000 930,000 US$19,300,000 US$19,320,000 US$ 5,030,000 US$ 5,030,000 7,510,000 7,030,000 4,830,000 4,830,000 1,930,000 2,430,000 US$19,300,000 US$19,320,000 (ii) Socrates declared and paid dividends on September 30, 2022. (iii) The inventories on hand on December 31, 2022, were purchased when the exchange rate was US$1 C$1.06. Required: (a) Assume that Socrates' functional currency is the Canadian dollar: (i) Calculate the 2022 exchange gain (loss) that would result from the translation of Socrates' financial statements (ii) Translate the 2022 financial statements into Canadian dollars. (b) Assume that Socrates' functional currency is the U.S. dollar: (1) Calculate the 2022 exchange gain (loss) that would result from the translation of Socrates' financial statements and would be reported in other comprehensive income. (ii) Translate the 2022 financial statements into Canadian dollars.