Problem 18-08 Remeasurement under the temporal method (LO 18-3) Mavrogenes Corporation is a wholly owned Canadian subsidiary of a U.S. parent company. Mavrogenes was formed on January 1 , 201, when the parent invested C $40 million and Mavrogenes issued 100 shares of common stock. The following are Mavrogenes's Canadian dollar financial statements for 201 and 202 : All transactions were entered into evenly throughout the year, except for the funding by Mavrogenes's parent on January 1, 20X1, and the purchase of C $30 million in fixed assets, which also took place on January 1,201. The fixed assets are being depreciated using the straight-line method over 10 years with no salvage value. Depreciation expense is included in Other operating expenses. The following are relevant exchange rates, all expressed as the U.S. dollar value of 1 Canadian dollar: gnore income taxes. Required: 1. Translate Mavrogenes's 201 Income Statement into U.S. dollars using the temporal method. 2. Translate Mavrogenes's 20X1 Statement of Retained Earnings into U.S. dollars using the temporal method. 3. Translate Mavrogenes's December 31, 20X1, Balance Sheet into U.S. dollars using the temporal method. 4. "Prove" the foreign exchange gain or loss you found for 201. 5. Translate Mavrogenes's 20X2 Income Statement into U.S. dollars using the temporal method. 5. Translate Mavrogenes's 20X2 Statement of Retained Earnings into U.S. dollars using the temporal method. 7. Translate Mavrogenes's December 31, 20X2, Balance Sheet into U.S. dollars using the temporal method. 3. "Prove" the foreign exchange gain or loss you found for 202. Complete this question by entering your answers in the tabs below. 5. Translate Mavrogenes's 20X2 Income Statement into U.S. dollars using the temporal method. 6. Translate Mavrogenes's 202 Statement of Retained Earnings into U.S. dollars using the temporal method. 7. Translate Mavrogenes's December 31, 20X2, Balance Sheet into U.S. dollars using the temporal method. 8. "Prove" the foreign exchange gain or loss you found for 202. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.) Problem 18-08 Remeasurement under the temporal method (LO 18-3) Mavrogenes Corporation is a wholly owned Canadian subsidiary of a U.S. parent company. Mavrogenes was formed on January 1 , 201, when the parent invested C $40 million and Mavrogenes issued 100 shares of common stock. The following are Mavrogenes's Canadian dollar financial statements for 201 and 202 : All transactions were entered into evenly throughout the year, except for the funding by Mavrogenes's parent on January 1, 20X1, and the purchase of C $30 million in fixed assets, which also took place on January 1,201. The fixed assets are being depreciated using the straight-line method over 10 years with no salvage value. Depreciation expense is included in Other operating expenses. The following are relevant exchange rates, all expressed as the U.S. dollar value of 1 Canadian dollar: gnore income taxes. Required: 1. Translate Mavrogenes's 201 Income Statement into U.S. dollars using the temporal method. 2. Translate Mavrogenes's 20X1 Statement of Retained Earnings into U.S. dollars using the temporal method. 3. Translate Mavrogenes's December 31, 20X1, Balance Sheet into U.S. dollars using the temporal method. 4. "Prove" the foreign exchange gain or loss you found for 201. 5. Translate Mavrogenes's 20X2 Income Statement into U.S. dollars using the temporal method. 5. Translate Mavrogenes's 20X2 Statement of Retained Earnings into U.S. dollars using the temporal method. 7. Translate Mavrogenes's December 31, 20X2, Balance Sheet into U.S. dollars using the temporal method. 3. "Prove" the foreign exchange gain or loss you found for 202. Complete this question by entering your answers in the tabs below. 5. Translate Mavrogenes's 20X2 Income Statement into U.S. dollars using the temporal method. 6. Translate Mavrogenes's 202 Statement of Retained Earnings into U.S. dollars using the temporal method. 7. Translate Mavrogenes's December 31, 20X2, Balance Sheet into U.S. dollars using the temporal method. 8. "Prove" the foreign exchange gain or loss you found for 202. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)