Verez Corp. is located in Brazil. The company was incorporated on January 1, 2021, and issued its no-par common shares for 3.0 million Brazilian reals (R). The Canadian parent acquired 90% of these shares on January 1, 2024. The financial statements for Verez on December 31, 2025, are shown below:

Additional Information:

• Verez uses the FIFO basis to value inventory. The December 31, 2024, inventory was acquired on October 1, 2024. The inventory on hand on December 31, 2025, was acquired on December 15, 2025.

• Cost of goods sold includes purchases of R28,045,000.

• Selling and administrative expense includes depreciation expense of R500,000.

• Verez declared and paid dividends of R1,210,000 on December 31, 2025.

• Exchange rate information:

Jan. 1, 2024	CDN$1 = R2.00
Oct. 1, 2024	CDN$1 = R1.94
Average, 2024	CDN$1 = R1.95
Dec. 31, 2024	CDN$1 = R1.91
Dec. 15, 2025	CDN$1 = R1.80
Average, 2025	CDN$1 = R1.86
Dec. 31, 2025	CDN$1 = R1.82

(conversion example at Jan. 1, 2024: R1,000,000 / 2.50 = CDN$ 400,000)

Required

Translate Verezs Income Statement for the year ended December 31, 2025 into dollars, assuming that Verezs functional currency is the Canadian dollar.

INCOME STATEMENT For the year ended December 31, 2025 Sales Cost of sales Selling and administrative Miscellaneous expense Income tax R35,000,000 28,150,000 2,440,000 2,000,000 1,045,000 33,635,000 R 1,365,000 Profit STATEMENT OF FINANCIAL POSITION At December 31, 2025 Property, plant, and equipment Accumulated depreciation Inventory Accounts receivable Cash 2025 R5,000,000 (2,500,000) 1,050,000 2,710,000 1,000,000 R7,260,000 2024 R5,000,000 (2,000,000) 1,155,000 2,550,000 500,000 R7,205,000 Common shares Retained earnings Bonds payable - due Jan. 3, 2031 Accounts payable R3,000,000 1,660,000 2,500,000 R3,000,000 1,505,000 2,500,000 100,000 R7,260,000 200,000 R7,205,000