• Purchases of inventory were made evenly throughout the fiscal year.

• Beginning inventory was acquired evenly throughout 2019; ending inventory was acquired evenly throughout 2020.

• The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$6,965 on December 31, 2020.

• Currency exchange rates for 1 Ps applicable to the Mexican operation follow:

Weighted average, 2019	C$	0.25
January 1, 2020		0.27
Weighted average rate for 2020		0.29
December 31, 2020		0.30

• The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $41,950 credit (positive) balance.

• The subsidiarys common stock was issued in 2007 when the exchange rate was $0.50 = C$1.

• The subsidiarys December 31, 2019, retained earnings balance was C$140,590, an amount that has been translated into U.S.$67,463.

• The applicable currency exchange rates for 1 C$ for translation purposes are as follows:

January 1, 2020	US$	0.70
April 1, 2020		0.69
June 1, 2020		0.68
Weighted average rate for 2020		0.67
December 31, 2020		0.65

1. Remeasure the Mexican operations account balances into Canadian dollars. (Note: Back into the beginning net monetary asset or liability position.)

2. Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for the Canadian subsidiary in its functional currency, Canadian dollars.

3. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial statements.