On January 1, 2020, Larmer Corp. (a Canadian company) 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 2020. Martin's January 1, 2020 Balance Sheet is shown below (in U.S. dollars): Current Monetary Assets Inventory Plant and Equipment Total Assets Current Liabilities Bonds Payable (maturity: January 1, 2026) Common Shares Retained Earnings Total Liabilities and Equity $50,000 $40,000 $25,000 $115,000 $45,000 $20,000 $30,000 $20,000 $115,000 The following exchange rates were in effect during 2020: January 1, 2020: Average for 2020: Date when Ending Inventory Purchased: December 31, 2020: US $1 = CDN $1.3350 US $1 = CDN $1.3400 1 = CDN $1.3500 US $1 = CDN $1.3600 Sales, purchases and other expenses occurred evenly throughout the year. Dividends declared and paid December 31, 2020. The financial statements of Larmer (in Canadian dollars) and Martin (in U.S. dollars) are shown below: Balance Sheets Martin $65,000 $50,000 $20,000 Current Monetary Assets Inventory plant and Equipment Investment in Martin (at Cost) Assets Current Liabilities Bonds Payable (maturity: January 1, 2026) Common Shares Retained Earnings INet Income Dividends Liabilities and Equity Income Statements Sales Dividend Income Cost of Sales Depreciation Other expenses Net Income Larmer $42,050 $60,000 $23,500 $66,250 $191,800 $50,000 $35,000 $60,000 $30,000 $28,800 ($12,000) $191,800 Larmer $80,000 $10,800 ($40,000) ($10,000) ($12,000) $28,800 $135,000 $48,000 $20,000 $30,000 $20,000 $27,000 ($10,000) $135,000 Martin $50,000 ($15,000) ($5,000) ($3,000) $27,000 Translate Martin's 2020 Income Statement into Canadian dollars if Martin's functional currency was the Canadian dollar (i.e. the same functional currency as the parent)