Required:

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

Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto, Canada. Although this wholly-owned subsidiary operates primarily in Canada, it engages in some transactions through a branch in Mexico. Therefore, the subsidiary maintains a ledger denominated in Mexican pesos (Ps) and a general ledger in Canadian dollars (C\$). As of December 31, 2024, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: - The Canadian subsidiary's functional currency is the Canadian dollar, and Sendelbach's reporting currency is the U.S. dollar. The Canadian and Mexican operations are not viewed as separate accounting entities. - The building and equipment used in the Mexican operation were acquired in 2014 when the currency exchange rate was C$0.25= Ps 1. - Purchases of inventory were made evenly throughout the fiscal year. - Beginning inventory was acquired evenly throughout 2023; ending inventory was acquired evenly throughout 2024. - The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,530 on December 31, 2024. - Currency exchange rates for 1 Ps applicable to the Mexican operation follow: - The December 31,2023 , consolidated balance sheet reported a cumulative translation adjustment with a $36,950 credit (positive) balance. - The subsidiary's common stock was issued in 2011 when the exchange rate was $0.45=C$1. - The subsidiary's December 31,2023 , retained earnings balance was C$135,530, an amount that has been translated into US\$70,421. - The applicable currency exchange rates for 1C$ for translation purposes are as follows