Rhine Ltd.'s (Rhine's) main operations are located in Germany, where it manufactures and sells watches. Approximately 10% of its sales are in Germany; 75% of its sales are to Elbe Inc. (Elbe), a publicly traded Canadian company; and the remaining 15% of its sales are made throughout the world. Elbe acquired its control in Rhine Ltd. in 2014 to take advantage of Rhine's worldwide distribution network and sophisticated labour force. As a result, approximately 80% of Elbe's worldwide sales are distributed through Rhine's distribution network. Most of Rhine's watches are produced in Germany. Rhine has generated sufficient cash flows from operating activities to finance its operating and investing activities. Rhine's condensed trial balances for the years ending December 31, 2020, and December 31, 2019, were as follows: Cash and accounts receivable Inventory Building, at cost Equipment, at cost Cost of goods sold Depreciation expense Other expenses Dividends paid Total debits Accumulated depreciation Monetary liabilities Common shares Retained earnings, beginning Sales Total credits 2020 2019 103,000 88,000 108,000 133,000 670,000 670,000 230,000 170,000 608,000 600,000 72,000 62,000 236,000 238,000 160,000 190,000 2,212,000 2,126,000 282,000 210,000 350,000 341,000 300,000 300,000 185,000 150,000 1,095,000 1,125,000 2,212,000 2,126,000 Additional information: 1. Sales, inventory purchases, and other expenses occurred evenly throughout the year. 2. The ending inventory for each year was purchased evenly throughout the last quarter of the year. 3. On January 1, 2020, Rhine purchased equipment for 60,000. The rest of the equipment and the building were acquired on January 1, 2017. 4. The dividends were declared and paid on January 1, 2020. 5. The exchange rates for the euro and the Canadian dollar were as follows: January 1, 2017 December 31, 2017 Average for the 2019 fourth quarter December 31, 2019/ January 1, 2020 Average for 2020 Average for the 2020 fourth quarter December 31, 2020 $1= 0.60 $1= 0.65 $1= 0.69 $1= 0.70 $1= 0.75 $1= 0.77 $1= 0.78 The Canadian dollar is the functional currency of both Rhine and Elbe. Required: a) Prepare a detailed calculation of the foreign exchange gain or loss on Rhine's net monetary position for the year ended December 31, 2020. b) Translate the following items into Canadian dollars as they would appear on the statement of financial position for Rhine at December 31, 2020, prior to its consolidation with Elbe: i. cash and accounts receivable ii. inventory iii. equipment, at cost (ignore accumulated depreciation)