Mavrogenes Corporation is a wholly owned Canadian subsidiary of a U.S. parent company. Mavrogenes was formed on January 1, 20X1, when the parent invested C$40 million and Mavrogenes issued 100 shares of common stock. The following are Mavrogeness Canadian dollar financial statements for 20X1 and 20X2:

(in millions of Canadian dollars)	20X2				20X1
Income Statement:
Sales	C$	190			C$	175
Cost of goods sold		(71	)			(68	)
Other operating expenses		(90	)			(122	)
Net income (loss)	C$	29			C$	(15	)
Statement of Retained Earnings:
Beginning retained earnings (deficit)	C$	(15	)		C$	0
Net income (loss)		29				(15	)
Ending retained earnings (deficit)	C$	14			C$	(15	)

(in millions of Canadian dollars)	December 31, 20X2				December 31, 20X1
Balance Sheet:
Cash	C$	23			C$	11
Other monetary assets		28				20
Fixed assets, net of accumulated depreciation		24				27
Total assets	C$	75			C$	58
Monetary liabilities	C$	21			C$	33
Common stock		40				40
Retained earnings (deficit)		14				(15	)
Total liabilities and equity	C$	75			C$	58

All transactions were entered into evenly throughout the year, except for the funding by Mavrogeness parent on January 1, 20X1, and the purchase of C$30 million in fixed assets, which also took place on January 1, 20X1. The fixed assets are being depreciated using the straight-line method over 10 years with no salvage value. Depreciation expense is included in Other operating expenses.

The following are relevant exchange rates, all expressed as the U.S. dollar value of 1 Canadian dollar:

January 1, 20X1		0.80
Average for 20X1		0.83
December 31, 20X1		0.87
Average for 20X2		0.86
December 31, 20X2		0.84

Ignore income taxes.

Required:

1. Translate Mavrogeness 20X1 Income Statement into U.S. dollars using the temporal method.
2. Translate Mavrogeness 20X1 Statement of Retained Earnings into U.S. dollars using the temporal method.
3. Translate Mavrogeness December 31, 20X1, Balance Sheet into U.S. dollars using the temporal method.
4. Prove the foreign exchange gain or loss you found for 20X1.
5. Translate Mavrogeness 20X2 Income Statement into U.S. dollars using the temporal method.
6. Translate Mavrogeness 20X2 Statement of Retained Earnings into U.S. dollars using the temporal method.
7. Translate Mavrogeness December 31, 20X2, Balance Sheet into U.S. dollars using the temporal method.
8. Prove the foreign exchange gain or loss you found for 20X2.

5. Translate Mavrogenes's 20X2 Income Statement into U.S. dollars using the temporal method. 6. Translate Mavrogenes's 20X2 Statement of Retained Earnings into U.S. dollars using the temporal method. 7. Translate Mavrogenes's December 31, 20X2, Balance Sheet into U.S. dollars using the temporal method. 8. "Prove" the foreign exchange gain or loss you found for 20X2. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)