On December 31, Year 1, Kelly Corporation of Toronto paid 13.7 million Libyan dinars (LYD) for 100% of the outstanding common shares of Arkenu Company of Libya. On this date, the fair values of Arkenus identifiable assets and liabilities were equal to their carrying amounts. Arkenus comparative balance sheets and Year 2 income statement are as follows:

BALANCE SHEET
At December 31
		Year 2			Year 1
Current monetary assets	LYD	11,361,000		LYD	9,670,000
Inventory		1,898,000			2,421,000
Plant and equipment (net)		6,957,000			7,363,000
	LYD	20,216,000		LYD	19,454,000
Current monetary liabilities	LYD	2,005,000		LYD	2,433,000
Bonds payable, due Dec. 31, Year 6		4,870,000			4,870,000
Common shares		5,070,000			5,070,000
Retained earnings		8,271,000			7,081,000
	LYD	20,216,000		LYD	19,454,000

INCOME STATEMENT
For the year ended December 31, Year 2
Sales	LYD	16,206,000
Inventory, Jan. 1		2,421,000
Purchases		10,938,000
Inventory, Dec. 31		(1,898,000	)
Depreciation expense		406,000
Other expenses		1,598,000
		13,465,000
Net income	LYD	2,741,000

Additional Information

• Exchange rates

Dec. 31, Year 1	LYD1	=	$0.52
Sep. 30, Year 2	LYD1	=	$0.62
Dec. 31, Year 2	LYD1	=	$0.65
Average for Year 2	LYD1	=	$0.58

• Arkenu Company declared and paid dividends on September 30, Year 2.
• The inventories on hand on December 31, Year 2, were purchased when the exchange rate was LYD1 = $0.63.

Kelly Corporations comparative balance sheets and Year 2 income statement are as follows:

BALANCE SHEET
At December 31
	Year 2			Year 1
Current monetary assets	C$	27,472,000		C$	26,780,000
Inventory		2,909,000			3,532,000
Investment in Arkenuat cost		7,124,000			7,124,000
Plant and equipment (net)		13,644,000			13,939,000
	C$	51,149,000		C$	51,375,000
Current monetary liabilities	C$	12,006,000		C$	12,582,000
Bonds payable, due December 31, Year 7		15,980,000			15,980,000
Common shares		10,000,000			10,000,000
Retained earnings		13,163,000			12,813,000
	C$	51,149,000		C$	51,375,000

INCOME STATEMENT
For the year ended December 31, Year 2
Sales	C$	46,317,000
Dividend income from Arkenu		961,620
		47,278,620
Inventory, Jan. 1		3,532,000
Purchases		30,817,000
Inventory, Dec. 31		(2,909,000	)
Depreciation expense		717,000
Other expenses		12,887,000
		45,044,000
Net income	C$	2,234,620

Additional Information

• Exchange rates

Dec. 31, Year 1	C$1	=	US$0.84
Sep. 30, Year 2	C$1	=	US$0.82
Dec. 31, Year 2	C$1	=	US$0.80
Average for Year 2	C$1	=	US$0.83

• Kelly Corporation declared and paid dividends on September 30, Year 2.
• The inventories on hand on December 31, Year 2, were purchased when the exchange rate was C$1 = US$0.81.
• The recoverable amount of Arkenus goodwill increased during Year 2.
• The Canadian dollar is the functional currency for both Kelly Corporation and Arkenu Company.

Required:

(a) Prepare Kelly Corporations consolidated financial statements for Year 2 using the Canadian dollar as the presentation currency. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.)

Consolidated Statement of Profit for the Year Ended December 31, Year 2
Sales		$
Dividend income from Arkenu
Inventory, Jan. 1
Purchases
Inventory, Dec. 31
Depreciation expense
Other expenses
Exchange loss (gain)
Total expenses
Profit		$
Attributable to:
NCI		$
Shareholders of Kelly Corporation

Retained Earnings Statements for Year Ended December 31, Year 2
Balance, January 1		$
Profit
Dividends
Balance, December 31		$

Consolidated Statement of Financial Position at December 31, Year 2
Current monetary assets		$
Inventory
Investment in Arkenu at cost
Plant and equipment (net)
Goodwill
		$
Current monetary liabilities
Bonds payable, due Dec. 31, Year 7
Common shares
Retained earnings
		$