On 1 July 2019, an Australian company, Sydney Limited, acquired all the issued shares of a United States company, New York Limited, as it looks to expand its operations into new overseas markets. The net assets of New York Limited on that date consisted of:

	US$
Share capital	180,000
General reserve	15,000
Retained earnings	75,000
Total equity	270,000

The relevant exchange rates for the period are as follows:

US$1 = A$

1 July 2019	1.52		Average for year 2019/2020	1.42
30 September 2019	1.48		Average (July 2019 December 19)	1.45
31 December 2019	1.42		Average (January 2020 June 2020)	1.35
30 June 2020	1.35		Average for June 2020	1.37
31 July 2020	1.40

Additional information relating to New York Limited:

1. Sales are seasonal and do not occur evenly throughout the year. 50% of total sales are generated in the first six months from July to December and the balance from January to June.

2. All expenses occur evenly throughout the year, except for closing inventory, which was purchased on 30 June 2020, and interest on the bank loan, which is paid semi-annually (an amount of US$3,000) on 31 December and 30 June each year.

3. The dividend was paid on 30 September 2019 and the dividend declared on balance date and will be paid in July 2020.

4. An additional item of equipment was purchased on 30 September 2019 for US$30,000. No other items of property, plant and equipment were purchased or sold during the year. All plant and equipment are depreciated on a straight-line basis at the rate of 20% p.a.

5. Land was purchased on 31 December 2019 for US$67,500.

Required:

The functional currency is considered to be Australian Dollars (AUD$). Prepare the translation of the 30 June 2020 financial statements of New York Limited (in US$) into Australian Dollars (AUD$). Round all numbers to the nearest whole number. (10 marks)

	US$	Rate	A$
Cash at Bank	88,950
Trade and other Receivables	82,800
Inventory	52,500
Land	67,500
Plant & Equipment	150,000
Accumulated Depreciation	(52,500)
Total Assets	389,250
Trade and other payables	42,000
Current Tax Liability	12,150
Bank Loan	60,000
Total Liabilities	114,150
Net Assets	275,100
Share Capital	180,000
Retained Earnings	80,100
General Reserve	15,000
Total Equity	275,100