$,$ Required:

Calculate the gain on sale of the truck.

Record journal entries prepared by the parent during $2021$

Prepare the required elimination entries for the year ended December $31,2021.$ Show your computations

Prepare a working paper for consolidated income statement for $2021.$

$(22$ Marks$)$

$B_B-$ Presented below is information related to XYZ Company:

$*$ On November $15,2020$ purchased inventory from a foreign supplier for $40,000$ foreign currency units.

On November $15,2020$ sold merchandise to a foreign customer for $100,000$ foreign currency units.

On January $15,2021,$ paid the amount due to the foreign supplier

On February $1,2021,$ received the amount due from the foreign customer.

Required:

$1-$ Prepare the journal entries for the previous transactions on XYZ books. The following exchange rates apply:

$\backslash$table$[[$Date$,$US Dollar per FCU,Date,US Dollar per FCU$],[$Nov $15,2020,$S$0\mathrm{.}80,$Jan $15,2021,$S$0\mathrm{.}74],[$Dec $31,2020,$S$0\mathrm{.}84,$Feb $1,2021,$S$0\mathrm{.}72]]$

$2-$ Did the U$.$S$.$ dollar strengthen or weaken from November to February and whatare implications for XYZ business?

$(14$ Marks$)$