On December 31, 2018, BUR Canada Inc acquired 90 of the voting shares of DOE Limited for 690,000 US$ On the acquisition date, the fair values of all the identifiable assets and liabilities for DOE equalled their carrying values DOE's main operations are located in USA It produces and sells fine California wine Approximately 10 of DOE's sales are in USA, another 15 of sales are made to BUR, and the remainder of its goods are sold throughout the world BUR acquired its interest in DOE to take advantage of DOE's worldwide distribution network As a result, approximately 80 of BUR's worldwide sales are distributed through DOE's distribution network Most of DOE's wine is produced in California, USA DOE has generated sufficient cash flows from operating activities to finance its operating and investing activities The consolidated trial balance of DOE for the years ended December 31, 2021 and 2020 was as follows 2021 (Amount in US$) 2020 (Amount in US$) Accounts Receivable US$ 207,000 US$ 70,000 Inventory 266,000 215,000 Building at cost 1,340,000 1,340,000 Equipment at cost 460,000 360,000 Cost of goods sold 1,215,000 1,200,000 Amortization expense 145,000 125,000 Other expenses 471,000 475,000 Dividends paid 320,000 380,000 Total Debits US$ 4,424,000 US$ 4,252,000 Monetary liabilities US$ 699,000 US$ 682,000 Common shares 600,000 600,000 Retained Earnings, beginning 370,000 300,000 Sales 2,190,000 2,250,000 Accumulated amortization 565,000 420,000 US$ 4,424,000 US$ 4,252,000 Other information 1 Sales, inventory purchases, and other expenses occurred evenly throughout the year 2 The ending inventory for each year was purchased evenly in the lats quarter of the year 3 On January 1, 2021, equipment was purchased by DOE for US$100,000 It has been estimated useful life of 8 years and a salvage value of US$5,000 DOE uses the double declining balance method to calculate amortization expense The other equipment and the building were acquired on January 1, 2018 4 The dividends were declared and paid on January 1, 2021 5 All the liabilities are monetary items 6 The exchange rates for the USD and the Canadian dollars were as follows January 1, 2018CA$1 US$ 0 50 December 31, 2018CA$1 US$0 60 December 31, 2020 January 1, 2021CA$1 US$0 70 Average for the 2020 4 th quarterCA$1 US$0 68 December 31, 2021CA$1 US$0 80 Average for 2021CA$1 US$0 76 Average for the 2021 4 th quarterCA$1 US$0 79 Required Prepare the translated income statement of DOE for the year ended December 31, 2021, including a detailed calculation of the foreign exchange gain or loss

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On December 31, 2018, BUR Canada Inc. acquired 90% of the voting shares of DOE Limited for 690,000 US$. On the acquisition date, the fair

On December 31, 2018, BUR Canada Inc. acquired 90% of the voting shares of DOE Limited for 690,000 US$. On the acquisition date, the fair values of all the identifiable assets and liabilities for DOE equalled their carrying values.

DOE's main operations are located in USA. It produces and sells fine California wine. Approximately 10% of DOE's sales are in USA, another 15% of sales are made to BUR, and the remainder of its goods are sold throughout the world. BUR acquired its interest in DOE to take advantage of DOE's worldwide distribution network. As a result, approximately 80% of BUR's worldwide sales are distributed through DOE's distribution network. Most of DOE's wine is produced in California, USA. DOE has generated sufficient cash flows from operating activities to finance its operating and investing activities.

The consolidated trial balance of DOE for the years ended December 31, 2021 and 2020 was as follows:

	2021 (Amount in US$)	2020 (Amount in US$)
Accounts Receivable	US$ 207,000	US$ 70,000
Inventory	266,000	215,000
Building - at cost	1,340,000	1,340,000
Equipment - at cost	460,000	360,000
Cost of goods sold	1,215,000	1,200,000
Amortization expense	145,000	125,000
Other expenses	471,000	475,000
Dividends paid	320,000	380,000
Total Debits	US$ 4,424,000	US$ 4,252,000

Monetary liabilities	US$ 699,000	US$ 682,000
Common shares	600,000	600,000
Retained Earnings, beginning	370,000	300,000
Sales	2,190,000	2,250,000
Accumulated amortization	565,000	420,000
	US$ 4,424,000	US$ 4,252,000

Other information

1. Sales, inventory purchases, and other expenses occurred evenly throughout the year.

2. The ending inventory for each year was purchased evenly in the lats quarter of the year.

3. On January 1, 2021, equipment was purchased by DOE for US$100,000. It has been estimated useful life of 8 years and a salvage value of US$5,000. DOE uses the double-declining balance method to calculate amortization expense. The other equipment and the building were acquired on January 1, 2018.

4. The dividends were declared and paid on January 1, 2021.

5. All the liabilities are monetary items.

6. The exchange rates for the USD and the Canadian dollars were as follows:

January 1, 2018CA$1 = US$ 0.50

December 31, 2018CA$1 = US$0.60

December 31, 2020/January 1, 2021CA$1 = US$0.70

Average for the 2020 4^th quarterCA$1 = US$0.68

December 31, 2021CA$1 = US$0.80

Average for 2021CA$1 = US$0.76

Average for the 2021 4^th quarterCA$1 = US$0.79

Required:

Prepare the translated income statement of DOE for the year ended December 31, 2021, including a detailed calculation of the foreign exchange gain or loss.