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:

Main Operation$$Canada

Debit Credit

Accounts payable C$ $35,000$

Accumulated depreciation $27,000$

Buildings and equipment C$ $167,000$

Cash $26,000$

Common stock $50,000$

Cost of goods sold $203,000$

Depreciation expense $8,000$

Dividends, $4/1/2428,000$

Gain on sale of equipment, $6/1/245,000$

Inventory $98,000$

Notes payable$$due in $202776,000$

Receivables $68,000$

Retained earnings, $1/1/24135,530$

Salary expense $26,000$

Sales $312,000$

Utility expense $9,000$

Branch operation $7,530$

Totals C$ $640,530$ C$ $640,530$

Branch Operation$$Mexico

Debit Credit

Accounts payable Ps $49,000$

Accumulated depreciation $19,000$

Building and equipment Ps $40,000$

Cash $59,000$

Depreciation expense $2,000$

Inventory $($beginning$$income statement$)23,000$

Inventory $($ending$$income statement$)28,000$

Inventory $($ending$$balance sheet$)28,000$

Purchases $68,000$

Receivables $21,000$

Salary expense $9,000$

Sales $124,000$

Main office $30,000$

Totals Ps $250,000$ Ps $250,000$

Additional Information

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\mathrm{.}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:

Weighted average rate for $2023$ C$ $0\mathrm{.}30$

January $1,20240\mathrm{.}32$

Weighted average rate for $20240\mathrm{.}34$

December $31,20240\mathrm{.}35$

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\mathrm{.}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 $1$ C$ for translation purposes are as follows:

January $1,2024$ US$ $0\mathrm{.}70$

April $1,20240\mathrm{.}69$

June $1,20240\mathrm{.}68$

Weighted average rate for $20240\mathrm{.}67$

December $31,20240\mathrm{.}65$

Required:

Remeasure the Mexican operation$$s account balances into Canadian dollars. $($Note: Back into the beginning net monetary asset or liability position.$)$

Prepare financial statements $($income statement, statement of retained earnings, and balance sheet$)$ for the Canadian subsidiary in its functional currency, Canadian dollars.

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