On January 1, 2017, Lamar Corp. (CAD) purchased 80% of Martin Inc, an American company, for US$50,000. Martin's book values approximated its fair values on that date except for plant and equipment, which had a fair value of US$30,000 with a remaining life expectancy of 5 years. A goodwill impairment loss of US$1,000 occurred during 2017. Martin's January 1, 2017 Balance Sheet is shown below (in U.S. dollars):

Current Monetary Assets	$50,000
Inventory	$40,000
Plant and Equipment	$25,000
Total Assets	$115,000
Current Liabilities	$45,000
Bonds Payable (maturity: January 1, 2022)	$20,000
Common Shares	$30,000
Retained Earnings	$20,000
Total Liabilities and Equity	$115,000

The following exchange rates were in effect during 2017:

January 1, 2017:	US $1 = CDN $1.3250
Average for 2017:	US $1 = CDN $1.3350
Date when Inventory Purchased:	US $1 = CDN $1.34
December 31, 2017:	US $1 = CDN $1.35

Dividends declared and paid December 31, 2017. The financial statements of Lamar (in Canadian dollars) and Martin (in U.S. dollars) are shown below:

Current Monetary Assets	LAMAR $42,050	MARTIN $65,000
Inventory	$60,000	$50,000
Plant and Equipment	$23,500	$20,000
Investment in Martin (at Cost)	$66,250	-
Assets	$191,800	$135,000
Current Liabilities	$50,000	$48,000
Bonds Payable (maturity: January 1, 2022)	$35,000	$20,000
Common Shares	$60,000	$30,000
Retained Earnings	$30,000	$20,000
Net Income	$28,800	$27,000
Dividends	($12,000)	($10,000)
Liabilities and Equity	$191,800	$135,000

2) Translate Martin's 2017 Income Statement into Canadian dollars if Martin is considered to be a self-sustaining foreign subsidiary.

3) Calculate Lamars Consolidated Net Income for 2017 if Martin is considered to be a self-sustaining foreign subsidiary.

4) Compute Martin's exchange gain or loss for 2017 if Martin is considered to be an integrated foreign subsidiary.

5) Translate Martin's 2017 Income Statement into Canadian dollars if Martin is considered to be an integrated foreign subsidiary.

6) Translate Martin's December 31, 2017 Balance Sheet into Canadian dollars if Martin is considered to be an integrated foreign subsidiary.

1 ANSWERED) Compute Martin's exchange gain or loss for 2017 if Martin is considered to be a self-sustaining foreign subsidiary:

Martin's exchange gain or loss for 2017
			In USD	Exchange Rate	In CAD
	Total Assets on Jan. 1, 2017		$1,15,000.00	US $1 = CDN $1.3250	$1,52,375.00
	Increase in Assets during the year		$20,000.00	US $1 = CDN $1.3350	$26,700.00
	Total Assets on Dec. 31, 2017		$1,35,000.00	Total	$1,79,075.00
				Total (at the exchange rate US $1 = CDN $1.35 )	$1,82,250.00
				Exchange Gain	$3,175.00