On January 1, 2017, Parent Co. acquired a 100% interest in a company, Sub Co., that operates in Europe.

Account balances for Sub Co. are summarized below:

in Euros(€)
	31-Dec-20	31-Dec-19
Cash and receivables	20,000	16,000
Inventory	45,000	42,000
Property, plant, equip (PP&E)	230,000	200,000
Acc depreciation PP&E	(55,000)	(40,000)
	240,000	218,000
Accounts payable	36,000	39,500
Loan payable	80,000	80,000
Common shares	40,000	40,000
Retained earnings	84,000	58,500
	240,000	218,000
Year ended December 31, 2020: (in Euros - €)
Revenue	130,000
Cost of goods sold	65,000
Operating expense	21,000
Depreciation expense	15,000
Net income	29,000
Other information:
Exchange rates on selected dates:
	€1 =$Cdn
01-Mar-16	$1.28
01-Jan-17	$1.32
December, 2019	$1.44
Dec 31, 2019/Jan 1, 2020	$1.46
30-Mar-20	$1.50
Average, 2020	$1.52
December, 2020	$1.56
31-Dec-20	$1.60

The subsidiary made purchases of PP&E of $30,000 on Jan 1, 2020 (2020 depreciation expense related to this purchase is $1,000), and all other PP&E was purchased March 1, 2016.  Ending inventory at the end of this year and last year was purchased throughout December  (FIFO) and purchases are made evenly throughout the year.Sales occurred relatively evenly throughout 2020.  Dividends of $3,500 were declared and remitted to the parent company on March 30, 2020.

Required:  

Show and label all calculations.

A) Assume that Parent uses the FCT (functional currency translation) method to translate Sub into Cdn$.   Calculate the Cdn$ values for Sub:

i)  Dec 31, 2020 - ALL ASSET values as presented on the Cdn$ balance sheet

ii)     2020 - Cdn$ INCOME STATEMENT including full calculation of exchange gain/loss

B)Assume instead that Sub used the PCT (presentation currency) method to translate Sub into Cdn$. Calculate the 2020 foreign exchange gain/loss (state which) reflected in OCI as a result of this translation.