Question #1: On January 1, 2019, Parent Co. purchased 100% of the shares of Husky Inc. Parent Co. reports in Canadian dollars.

Huskys statements are as follows:

Husky Inc.
Statement of Comprehensive Income
For the Year Ended Dec 31, 2019
	US$
Revenue	300,000
Other expenses	120,000
Depreciation expense	60,000
Interest expense	40,000
	220,000
Net Income & Comprehensive Inc	80,000

Husky Inc.
Statement of Financial Position
December 31,		2019	2018
Assets		US$	US$
	Cash	60,000	40,000
	Accounts receivable	40,000	50,000
	Land	70,000
	PP&E	600,000	600,000
	Accumulated depreciation	(120,000)	(60,000)
	Total Assets	650,000	630,000

Liabilities & Share Equity
	Accounts payable	10,000	20,000
	Notes Payable	100,000	100,000
		110,000	120,000
	Common shares	500,000	500,000
	Retained earnings	40,000	10,000
		540,000	510,000
	Total Liab & Share Equity	650,000	630,000

Other information:

Assume Jan 1, 2019 balances are the same as Dec 31, 2018.

• The land was purchased May 1, 2019.
• There has been no purchases or disposals of PP&E during 2019.
• Dividends of $50,000 were declared and paid on Dec 1, 2019.

Revenue and expenses were incurred evenly throughout the year.

Foreign exchange rates:		Cdn$
1-Jan-19	US$1	1.20
1-May-19	US$1	1.24
1-Dec-19	US$1	1.28
31-Dec-19	US$1	1.30
Average for 2019	US$1	1.25

Required:

Assume that Huskys functional currency is determined to be the Canadian dollar. Translate Huskys financial statements into Canadian dollars for purposes of consolidation (functional currency method):

1. The statement of comprehensive income for the year ended December 31, 2019
2. The statement of financial position at December 31, 2019
   • For (a)&(b) show the statements with US$ amounts in one column, exchange rate used in next column (as applicable), and then the Cdn$ amounts. Show all calculations belowyour statements that require more detail to translate.