On December 31, Year 1, Kelly Corporation of Toronto poid 1310 million Libyan dinars (LYD) for 100% of the outstanding cormmon shares of Arkenu Company of Libya. On this date, the fair values of Arkenu's identifiable assets and liabilities were equal 10 their carrying amounts. Arkenu's comparatlve balance sheets and Year 2 income statement are os follows. Additional information - Exchange rotes - Arkeni Company declored and paid alvidends on September 30, Yoor 2 - The inventorles in hand on December 31 , Year 2 , were purchosed when the exchange rate was LYDt= 50.63 Recuired: (a) Assume that Arkenu's functional currency is the Canadian dollor (i) Calculate the Year 2 exchenge gain or loss thot would result from the translotion of Arkenu's financial stavements, (Enter enswert in Whole dollers and not in milions of doliers. Input all amounts ss positive value. Omit currency symbol in your response. (ii) Prepare translated financial stotements for Year 2 (Round the velues in the "Rate" column to 2 decimal pleces. Exchenge gain, if any, should be entered as positive value, ond Exchange loss, if any, should be entered with a minus sign. Enter answers in whole dollers and net in milliens of dollers. Input all other amounts as positive values. Omit curtency symbol in your response.) (b) Assume that Arkenus functional currency is the Libyan dinar: (i) Calculate the Year 2 exchange gain or loss that would result from the translation of Arkenu's financial statements. (Enter answers in whole dollars and not in milions of dollars, Input all emounts as positive value. Omit currency symbol in your response.) (ii) Prepare translated financial statements for Year 2 . (Round the values in the "Rate" column to 2 decimal places. Loss amounts should be indicoted with a minus sign. Enter answers in whole dollers and not in millions of dollars. Input ell other amounts as positive values. Omit currency symbel in your response.) (ii) Calculate the amount of goodwal thot would appeor on the December 31, Year 2, consolidated balance sheet if there was an impairment loss of LYDSO.000 during the year (Enter answers in whole dollars and not in millions of dollers. Input all other amounts as positive values. Omit currency symbol in your response.) Goodwill- Decembet 31, Yeat 2 (iv) Calculate the amount of the exchange goin or loss that would oppear in Kelly's Year 2 consolidated financial satements. (Enter enowers in whole doliors nnd not in millions of dollers, Input all nmounts ns positive value. Omit curreney aymbel in your response, (c) Which functional currency would Akenu prefer to use if it wants to show the following? (i) The strongest eolvency postion for the compeny Functional curtency is Canadian deliat Functionol currency is Libyan dinar and accumulated foreign exchange odjustments (AFEA) are inciuded in equity Functionei currency:s Libyon dinor and AFEA are excluded from ectily. (iii) The best return on shareholders equity Functional curtency b Conodian doliser. Furistorib turency a Lbyen dinor ond omer comprehenswe income iOCH a included in income and AFEA wheluded in equiry Functional cumency is Libyso dingar and Oci is excloded from income and AFEA are excluded from equity. On December 31, Year 1, Kelly Corporation of Toronto poid 1310 million Libyan dinars (LYD) for 100% of the outstanding cormmon shares of Arkenu Company of Libya. On this date, the fair values of Arkenu's identifiable assets and liabilities were equal 10 their carrying amounts. Arkenu's comparatlve balance sheets and Year 2 income statement are os follows. Additional information - Exchange rotes - Arkeni Company declored and paid alvidends on September 30, Yoor 2 - The inventorles in hand on December 31 , Year 2 , were purchosed when the exchange rate was LYDt= 50.63 Recuired: (a) Assume that Arkenu's functional currency is the Canadian dollor (i) Calculate the Year 2 exchenge gain or loss thot would result from the translotion of Arkenu's financial stavements, (Enter enswert in Whole dollers and not in milions of doliers. Input all amounts ss positive value. Omit currency symbol in your response. (ii) Prepare translated financial stotements for Year 2 (Round the velues in the "Rate" column to 2 decimal pleces. Exchenge gain, if any, should be entered as positive value, ond Exchange loss, if any, should be entered with a minus sign. Enter answers in whole dollers and net in milliens of dollers. Input all other amounts as positive values. Omit curtency symbol in your response.) (b) Assume that Arkenus functional currency is the Libyan dinar: (i) Calculate the Year 2 exchange gain or loss that would result from the translation of Arkenu's financial statements. (Enter answers in whole dollars and not in milions of dollars, Input all emounts as positive value. Omit currency symbol in your response.) (ii) Prepare translated financial statements for Year 2 . (Round the values in the "Rate" column to 2 decimal places. Loss amounts should be indicoted with a minus sign. Enter answers in whole dollers and not in millions of dollars. Input ell other amounts as positive values. Omit currency symbel in your response.) (ii) Calculate the amount of goodwal thot would appeor on the December 31, Year 2, consolidated balance sheet if there was an impairment loss of LYDSO.000 during the year (Enter answers in whole dollars and not in millions of dollers. Input all other amounts as positive values. Omit currency symbol in your response.) Goodwill- Decembet 31, Yeat 2 (iv) Calculate the amount of the exchange goin or loss that would oppear in Kelly's Year 2 consolidated financial satements. (Enter enowers in whole doliors nnd not in millions of dollers, Input all nmounts ns positive value. Omit curreney aymbel in your response, (c) Which functional currency would Akenu prefer to use if it wants to show the following? (i) The strongest eolvency postion for the compeny Functional curtency is Canadian deliat Functionol currency is Libyan dinar and accumulated foreign exchange odjustments (AFEA) are inciuded in equity Functionei currency:s Libyon dinor and AFEA are excluded from ectily. (iii) The best return on shareholders equity Functional curtency b Conodian doliser. Furistorib turency a Lbyen dinor ond omer comprehenswe income iOCH a included in income and AFEA wheluded in equiry Functional cumency is Libyso dingar and Oci is excloded from income and AFEA are excluded from equity