On January 1,20X7,Clock Inc

question 41

Essay

On January 1,20X7,Clock Inc.of Vancouver,British Columbia,purchased 75% of the outstanding shares of Time Limited,in London England.Time Limited's statements of financial position,statements of comprehensive income and changes in equity - retained earnings section for the year ended December 31,20X7 are below.


Additional information:
1.Time was incorporated on January 1,20X3 when it acquired all its equipment for £4,005,000 and issued its 10 year bonds payable.
2.Time's purchases and sales occurred evenly over the year.Inventories on hand at December 31,20X6 and December 20X7 were purchased evenly over the last quarter of 20X6 and 20X7,respectively.Inventories as at December 31,20X7 were £650,000.
3.Dividends were paid on March 31,20X7.
4.Foreign exchanges rates are as follows:
Required:
Translate Time's statement of comprehensive income for the year ended December 31,20X7 into Canadian dollars assuming its functional currency is Canadian dollars.Calculate the translation gain or loss arising in 20X7.

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Definitions:

Metal Oxide Varistor

A voltage-dependent resistor with a nonlinear variance, used to protect electrical circuits from voltage spikes.

Inductance

The property of an electrical conductor by which a change in current flowing through it induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Wire Resistance

The electrical resistance of a wire, determined by its material, length, and cross-sectional area, affecting the flow of electric current through it.

Fleming's Left-hand Generator Rule

A rule used to predict the direction of movement in a motor, the direction of induced current, or the force on a conductor in a magnetic field, based on the thumb, forefinger, and middle finger of the left hand.