Zugar Company is a foreign subsidiary of Posada Company whose presentation currency is the U.S. dollar ($). Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2016 with three assets: cash of 20,000 dinars, accounts receivable of 80,000 dinars, and land that cost 200,000 dinars. On 1 January, 2016, Zugar has a 150,000 dinar note payable and no other liabilities. On 1 May, 2016, Zugar renders services to a customer for 120,000 dinars, which was immediately paid in cash. On 1 June, 2016, Zugar incurred a 100,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year. Currency exchange rates are as follows: Dinar 1= 1-January-2016 $ 0.36 1-May-2016 $ 0.37 1-June-2016 $ 0.39 31-December-2016 $ 0.41 Required: 1. Assume the subsidiary's functional currency is local currency. Determine the translation method and calculate the translation difference for the subsidiary for the year 2016. (7 marks) 2. Assume the subsidiary's functional currency is the parent's presentation currency. Determine the translation method and calculate the translation difference for the subsidiary for the year 2016. (9 marks) 3. Continued with part (c) above, calculate the net profit for the subsidiary for the year 2016. (4 marks)