In 2015, Corbus Co., a Canadian company, created a foreign subsidiary called Snazzy Ltd. by investing $2,000,000 CAD (800,000 FC) in return for all of Snazzy?s common shares. In preparing to start operations, Snazzy acquired equipment for 960,000 FC and took out a 320,000 FC loan. Snazzy is committed to repaying the loan in 3 years. In 2016, Snazzy acquired a tract of land for 320,000 FC. All dividends were paid on December 31 of the years in which they were declared.

Snazzy?s financial statements for its first 2 years of operations are presented below.

a) Assume that Snazzy?s functional currency is the Canadian dollar and Independently calculate the translation gain/loss.

b) Assume that Snazzy?s functional currency is the FC and Independently calculate the translation gain/loss.