In November 2019, Captain America Inc. purchased inventory for US $200,000 when the exchange rate as US $1=CDN $1.25.At December 31 year-end, the inventory had a market value of US $210,000 and the exchange rate was US $1 = CDN $1.18.

What will be the total gain (loss) on this inventory for 2019? (2 marks)

Questions B and C are based on the following information:

On April 1, 2019, Avengers Inc., a Canadian public company, issues 1,250,000 in long-term debt to lenders in the United Kingdom. The debt pays interest at an annual rate of 12 percent, with payments due on March 31 of each year. The debt matures on March 31, 2024. Avengers closes its books on December 31 and prepares its financial statements in Canadian dollars. As a consequence, all amounts relating to this debt must be translated. Relevant exchange rates are as follows

B.Determine the Interest Expense relating to the long-term debt that will be reported in Avengers' Income Statement for the year ending December 31, 2019 would be. (2 marks)

C.How much foreign Exchange Gain (Loss) on the long-term debt that would be reported in Avengers' Income Statement for the year ending December 31, 2020. (2 marks)

Questions D and E are based on the following information:

Superman owns 80% of the common shares of Batgirl and 40% of the common shares of Conan. In addition, Batgirl owns 15% of the common shares of Conan.

D.Based strictly on its share ownership, what best represents Superman's relationship to Conan?(1 mark)

E. On Superman's separate entity financial statements, what percentage of Conan's income would flow to Superman under the equity method of accounting? (1 mark)

Questions F through G are based on the following information:

Use the following information for parts F to G.The following amounts (stated in millions) are to be used to determine which segments are reportable

F. Using only the operating profit test, which of the operating segments would be reportable? (1 mark)

G. Using all of the tests for reporting operating segments in Section 1701 of the CPA Handbook, which operating segments would qualify as reportable segments? (1 mark)

April 1, 2019 December 31, 2019 April 1,2020 July 1,2020 October 1, 2020 December 31, 2020 s1=cs2.3BE1=c$2.32E1=c$2.34E1=c$2.36E1=C$2.3BE1=c$2.40 \begin{tabular}{|c|c|c|c|c|c|} \hline Stgmens & \begin{tabular}{l} Revenues \\ Interdivision \end{tabular} & Extemal & \begin{tabular}{l} Fevesues \\ Total \end{tabular} & \begin{tabular}{l} Operating \\ Profitu(Lass) \end{tabular} & Assecs \\ \hline & 100 & 900 & 1,000 & 250 & 2,600 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline B & 0 & 600 & 600 & 50 & 4,000 \\ \hline c & 400 & 1,540 & 2,000 & (60) & 1,200 \\ \hline D & 300 & 200 & 500 & 40 & 5,000 \\ \hline E & 40 & 360 & & (240) & 14,000 \\ \hline F & 200 & 1,600 & 1,800 & 210 & 2,000 \\ \hline G & 300 & 0 & 300 & 30 & 2,000 \\ \hline H & 500 & 1200 & 1,200 & 180 & 7,500 \\ \hline 1 & -100 & & 900 & 42 & 3.300 \\ \hline Total & 2.000 & 7,600 & 9,000 & 500 & 42,200 \\ \hline \end{tabular}