I need detailed help with steps on where the $35,000 comes from exactly, how it is calculated. Be ready for follow up questions on your explanation.

Kennedy Company acquired all of the outstanding common stock of Hastie Company of Canada for U.S. $350,000 on January 1, 2013, when the exchange rate for the Canadian dollar (CAD) was U.S. $.70. The fair value of the net assets of Hastie was equal to their book value of CAD 450,000 on the date of acquisition. Any acquisition consideration excess over fair value was attributed to an unrecorded patent with a remaining life of five years. The functional currency of Hastie is the Canadian dollar. For the year ended December 31, 2013, Hastie's trial balance net income was translated at U.S. $25,000. The average exchange rate for the Canadian dollar during 2013 was U.S. $.68, and the 2013 year-end exchange rate was U.S. $.65. Amortization of the patent, translated, for 2013 would be ?

Solution was shown as Patent Value 35,000 / .70 = Patent Value 50,000 / 5 years = C $10,000 x .68 = $6,800 translated

I don't get where the $35,000 comes from and why we are multiplying by $.68