Sundre Corp is a foreign subsidiary of Pawnee Company, a Canadian company. Sundre Corp was acquired December 31, 2020 and manufactures fireworks for sale based on sales prices determined by world-wide competition. The chief financial officer of Sundre Corp emailed the following December 31, 2021 financial statements, stated in Euro () to you, the CFO of Pawnee Company Cash Accounts receivable Inventory Note receivable, due December 31, 2024 Delivery vans, net Accounts payable Bonds payable Common shares Retained earnings Sales and interest revenue Cost of goods sold Administration expenses Bond interest expense Amortization Income taxes Net income Retained earnings, January 1 Dividends Retained earnings, December 31 Additional Information Exchange rates: Jan 1, 2019 Jan 1, 2020 1. SUNDRE CORP Balance Sheets (in Euro ()) SUNDRE CORP Statement of Income and Retained Earnings years ended December 31, 2021, and 2020 (in Euro ()) Mar 31, 2020 Average for July 1 - Dec 2020 Dec 31, 2020/Jan 1, 2021 March 31, 2021 Dec 31, 2021 210,000 310,000 550,000 100,000 430.000 1,600,000 Average for Jan 1 - Jun 30, 2021 Average for Jul 1 - Dec 31, 2021 Average for Apr 1 - Dec 31, 2021 Dec 31, 2021 Average for 2021 150,000 700,000 300,000 450.000 1.600.000 2021 1,700,000 1,200,000 105,000 60,000 85,000 80,000 170,000 320,000 (40.000) 450.000 1 EURO = C $1.50 1 EURO = C $1.45 1 EURO = C $1.43 1 EURO = C $1.44 1 EURO = C $1.48 Dec 31, 2020 190,000 335,000 500,000 1 EURO = C $1.52 1 EURO = C $1.54 1 EURO = C $1.57 1 EURO = C $1.53 1 EURO = C $1.59 1 EURO = C $1.55 275.000 1,300,000 180,000 500,000 300,000 320.000 1.300.000 2020 1,500,000 1,210,000 95,000 40,000 55,000 32.000 68,000 282,000 (30,000) 320,000 2. 3. 4. 5. 6. 7. 8. a) Inventories on hand at December 31, 2021 and December 31, 2020 were purchased evenly over the final 6 months of 2021 and 2020 respectively. b) Sundre Corp issued 500,000 of its bonds on January 1, 2019 and 300,000 on January 1, 2021. All bonds pay interest at 8% and mature on December 31, 2026. On July 2, 2021, Sundre Corp repurchased 100,000 of the bonds at their face value. Sundre Corp declared and paid dividends of 30,000 and 40,000 on March 31, 2020 and March 31, 2021, respectively. Sundre Corp leased its delivery vans until January 1, 2020. On that date, it acquired 10 delivery vans at a cost of 330,000. On March 31, 2021, it acquired an additional 8 delivery vans at a cost of 240,000. All of Sundre Corp's delivery vans have an estimated useful life of 6 years from the date of acquisition, with no expected salvage value. None of the delivery vans have been sold since January 1, 2020. REQUIRED: The notes receivable was received from one of Sundre Corp's clients on March 31, 2021. It pays interest at 10% and is due on December 31, 2024. All sales, purchases, and other expenses are incurred evenly throughout the year. All amounts for Sundre Corp are stated in Euro (). Translate Sundre Corp's 2021 financial statements into Canadian dollars, the Canadian dollar as the functional currency (Income Statement, Retained Earnings, Balance Sheet) Include in your calculations (1) the gain or loss on net monetary assets (liabilities), (2) cost of goods sold, (3) amortization expense. (FCT) (23 marks) Assuming that Sundre uses the Euro (not Canadian $) as the functional currency, Calculate the liabilities and shareholder's equity portion of the translated balance sheet as at December 31, 2021. Use the presentation currency translation method (PCT) (7 marks) SHOW ALL CALCULATIONS, including Accumulated translation adjustments (OCD) at December 31, 2021.