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 2022 2021 Plant and equipment (net) US$ 6,630,000 US$ 7,330,000 Inventory 5,730,000 6,330,000 Accounts receivable 6,130,000 4,730,000 Cash 810,000 930,000 US$19,300,000 US$19,320,000 Common shares US$ 5,030,000 US$ 5,030,000 Retained earnings 7,510,000 7,030,000 Bonds payable-due Dec. 31. Year 6 4,830,000 4,830,000 Current liabilities 1,930,000 2,430,000 US$19,300,000 US$19,320,000 Sales INCOME STATEMENT For the year ended December 31, 2022 US$33,000,000 Cost of purchases 25,740,000 Change in inventory 600,000 Depreciation expense 700,000 Other expenses 4,190,000 31,230,000 Profit US$ 1,770,000 Additional Information Exchange rates Dec. 31, 2021 US$1 = C$1.15 Sep. 30, 2022 US$1 = C$1.05 Dec 31, 2022 US$1 = C$1.07 Average 2022 US$1 = C$1.08 (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: 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. 6) Assume that Socrates' functional currency is the U.S. dollar: 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