On 1 July 2019, an Australian company Afghanistan Ltd acquired all the issued shares of Brazil Ltd, a company incorporated in the United States (US). At this date Brazil Ltd had the following account balances:

	US$
Bank loan	4 000
Plant and equipment	4 200
Cash and debtors	400
Inventory	2 000
Retained earnings	600

Other account balances for Brazil Ltd at 30 June 2020 are as follows:

	US$ Dr	US$ Cr
Share capital		2 000
Retained earnings		1 200
Bank loan		4 000
Accounts payable		1 600
Sales		10 000
Plant and equipment	3 800
Cash and debtors	3 200
Inventory	1 800
Purchases	8 000
Administration expense	300
Depreciation expense	400
Income tax expense	500

Exchange rates for the year ending 30 June 2020 are as follows:

1 July 2019	US$1 = A$1.50
30 June 2020	US$1 = A$1.70
Average for year	US$1 = A$1.60
Ending inventory acquired (before year end)	US$1 = A$1.65

Required:

1) US dollar is the functional currency of Brazil Ltd and the Australian dollar is the presentation currency of the group:

a) Prepare the Statement of profit or loss and the statement of financial position of the foreign operation at 30 June 2020. (10 marks)