On January 1, 2021, Mary Ltd. (ML), a Canadian company, acquired 90% of Jane Co. (JC), a foreign company, for FC 623,200. At the acquisition date, the carrying value of JC's net assets equaled their fair value except for the equipment which had a carrying value of FC 800,000 and a fair value of FC 500,000. At the acquisition date, JC's equipment had a remaining useful life of 10 years. There was a FC 25,000 impairment of the goodwill which occured evenly throughout 2020. ML declared and paid dividends of $928,000 on December 31, 2020. JC declared and paid dividends of FC 164,000 on December 31, 2020. Selected financial statements for ML and JC are presented below. Mary Ltd. Statement of Financial Position As of December 31, 2020 (in $ CAD) Mary Ltd. Statement of income For the year ended December 31, 2020 (in $ CAD) Assets Current assets Cash and cash equivalents Accounts receivable Inventory Noncurrent assets Plant and equipment, net Investment in Jane Co. Total assets Liabilities and shareholders' equity Liabilities $ Sales Dividend income Cost of sales $ 8,256,000 Other expenses* 7,124,000 562,080 700,000 1,376,000 2,638,080 Net income 2,752,000 1,558,000 4,310,000 $ 6,948,080 Current liabilities $ 923,600 Accounts payable and accrued liabilities Non current liabilities Notes payable Shareholders' equity Share capital Retained earnings Total liabilities and shareholders' equity 1,860,000 2,783,600 1,562,960 2,601,520 4,164,480 $ 6,948,080 *includes depreciation $ 16,246,180 405,900 16,652,080 15,380,000 $ 1,272,080 Assets Current assets Jane Co. Statement of Financial Position Cash and cash equivalents Accounts receivable Inventory Noncurrent assets Plant and equipment, net Total assets (in FC) Jane Co. Statement of income For the year ended December 31, 2020 (in FC) Dec. 31, 2020 Jan. 1, 2021 Sales 8,400,000 Cost of sales 5,304,000 360,000 164,000 Other expenses* 2,688,000 7,992,000 408,000 280,000 Net income 408,000 484,000 364,000 1,252,000 808,000 *includes depreciation 720,000 1,972,000 800,000 1,608,000 Liabilities and shareholders' equity Liabilities Current liabilities 542,000 422,000 Jane Co. Statement of Changes in Equity Retained Earnings Section For the year ended December 31, 2020 Accounts payable and accrued liabilities (in FC) Non current liabilities Retained earnings, Jan. 1, 2021 146,000 Notes payable 640,000 640,000 Net income 408,000 1,182,000 1,062,000 Dividends declared (164,000) Shareholders' equity Share capital Retained earnings Total liabilities and shareholders' equity Retained earnings, Dec. 31, 2020 390,000 400,000 400,000 390,000 146,000 790,000 546,000 1,972,000 1,608,000 Selected Exchange Rates January 1, 2021 December 31, 2020 Date when ending inventory was purchased average for 2020 Required: 1 FC = x.xx CAD $2.50 $2.75 $2.68 $2.69 Prepare the consolidated financial statements at December 31, 2020, using a. the functional currency translation (FCT) method (assuming the Canadian dollar is the functional currency) and b. the presentation currency translation (PCT) method.