Question 2: __15 Marks On 1 July 2019, an Australian company Frankston Ltd acquired all the issued shares of in Boston Ltd, a company incorporated in the United States (US). At this date Boston Ltd had the following account balances: Bank loan Plant and equipment Cash and debtors Inventory Retained earnings US$ 4 000 4200 400 2 000 600 Other account balances for Boston Ltd at 30th June 2020 are as follows: USS Dr US$ Cr 2 000 1 200 4 000 1 600 10 000 Share capital Retained earnings Bank loan Accounts payable Sales Plant and equipment Cash and debtors Inventory Purchases Administration expense Depreciation expense Income tax expense 3 800 3 200 1 800 8 000 300 400 500 Exchange rates for the year ending 30 June 2020 are as follows: 1 July 2019 US$1 - A$1.50 30 June 2020 US$1 = A$1.70 Average for year US$1 = A$1.60 Ending inventory acquired (before year end) US$1 - A$1.65 Required: a) Prepare the Statement of profit or loss and other comprehensive income and the statement of financial position of the foreign operation at 30 June 2020, assuming that the US dollar is the functional currency of Boston Ltd and the Australian dollar is the presentation currency of the group. b) Calculate the foreign currency translation reserve