Previous Page Next Page Page 2 of 1 Question 2 (4 points) On December 31 Year 1, Poppy's Toys (PT) purchased 100% of the shares of Sally's Treats (ST). Poppy's Toy's operates in Ottawa, Ontario and manufactures dog toys. Sally's treats is based out of New York State and manufactures dog treats. ST sales are approximately 45% Canadian dollars and 55% in United States dollars. Approximately 70% of ST expenses are from a raw material provider in Cornwall, Ontario. ST has two major competitors in New York State. ST obtained a loan from Scotiabank in Cornwall, Ontario to finance their purchases of raw materials. Since both sales and expenses are incurred in both CAD and USD, ST usually has more than one currency left over at the end of every month. If there is a large CAD balance remaining, ST often transfers the CAD to their USD bank account. Required: Discuss what functional currency ST should be using for their financial records. EVE + ... Paragraph V BIU A