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SELGOR INCOME STATEMENT for the Years Ended December 31, 20X8 (EUR) Sales EUR 850,000 Cost Of Goods Sold (500,000) Depreciation (30,000) Other Expenses (245,000) Net

SELGOR INCOME STATEMENT for the Years Ended December 31, 20X8 (EUR)

Sales EUR 850,000
Cost Of Goods Sold (500,000)
Depreciation (30,000)
Other Expenses (245,000)
Net Income 75,000

Foreign exchange rates were as follows:

Jan. 1, 20X7 :

EUR 1 = C$ .80

Jan. 1, 20X8 :

EUR 1 = C$ 1.20

Jul. 1, 20X7 :

EUR 1 = C$ .98

Jul. 1, 20X8 :

EUR 1 = C$ .86

Dec. 31, 20X7 :

EUR 1= C$ 1.20

Dec. 31, 20X8 :

EUR 1= C$ .90

Average for 20X7 :

EUR 1= C$ 1.05

Average for 20X8 :

EUR 1= C$ .85

Inventory on hand as at December 31, 20X8, was purchased on July 1. Land was acquired on January 1, 20X8.

Considering that SELGOR and POIKEL do NOT have the same functional currency (SELGOR is a self-sustaining operation), calculate the balance of Retained earnings of POIKEL in Canadian dollars as at December 31, 20X8. The translated amount of the retained earnings as at December 31, 20X7 was equal to C$106,250.

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