Question a. Maximus Ltd is an Australian company, acquired all the issued shares of Minimus Ltd, a US company, on 1 January 2018. At this date, the net assets of Minimus Ltd are as follows: Property, Plant and equipment Accumulated Depreciation Cash Inventory Accounts Receivable Total Assets Accounts Payable Net Assets $ US$ 155,000 (30,000) 125,000 10,000 20,000 10,000 165,000 15,000 150,000 The trial balance of Minimus Ltd as at 31 December 2018 is as follows: Share capital Retained Earnings Accounts Payable Sales Accumulated Depreciation (plant and Equipment) Property, plant and equipment Accounts receivable Inventory Cash Cost of Sales Depreciation Other expenses US$ (Dr) US$ (Cr) 100,000 50,000 42,000 90,000 45,000 155,000 40,000 45,000 12,000 30,000 15,000 30,000 327,000 327,000 Additional information: 1. ii. No property plant and equipment were acquired in the 2018 period. All sales and expenses are acquired evenly throughout the period. The inventory on hand at the end of the year was acquired during December 2018 Exchange rates were (AS$1=US$): 1 January 2018 31 December 2018 Average for December 2018 Average for 2018 0.52 0.60 0.58 0.56 iv. The functional currency for Minimus Ltd is the US Dollars. Required: 1. Prepare the financial statement of Minimus Ltd at 31 December 2018 in the presentation currency. (10 marks) 2. Discuss the differences that would occur if the functional currency of Minimus Ltd were the Australian dollar. (10 Marks)