On December 31, 2020, Pine Ltd. paid 369,000 (euros) to obtain 90% of the common

shares of Sandalwood Ltd., a Portuguese company. On this date the exchange rate was

1 = C$1.38. On the day of the acquisition, the carrying amount of Sandalwoods

identifiable net assets was 360,000 and all carrying amounts were equal to fair values.

There was a goodwill impairment loss in 2021 of 3,000.

Sandalwoods income statement information and balance sheet information (in euros)

relating to the year ended December 31, 2021, are presented below:

Income statement information:

Revenue 820,000

Cost of goods sold 512,000

Depreciation expense 45,000

Other expenses 168,000

Net income 95,000

Balance sheet information:

Cash and receivables 65,000

Inventory 77,000

Property, plant and equipment (net) 640,000

Total assets 782,000

Monetary liabilities 357,000

Common shares 100,000

Retained earnings 325,000

Total liabilities and shareholders equity 782,000

Additional information

1. Exchange rates were as follows:

December 31, 2021 1= C$1.30

Average for 2021 1= C$1.34

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

3. A dividend of 30,000 was declared and paid on December 31, 2021.

4. All items of property, plant and equipment had been purchased by Sandalwood when

the company began on July 14, 2015, when the exchange rate was 1 = C$1.66.

5. At December 31, 2020, Sandalwood had inventory of 65,000. The inventory had

been purchased when 1 = C$1.40. Sandalwood had inventory purchases during the

year of 524,000 and these purchases occurred evenly throughout the year. The ending

inventory was purchased when the exchange rate was 1 = C$1.31.

6. At December 31, 2020, Sandalwoods monetary liabilities exceeded its monetary

assets by 390,000.