TRANSLATION OF FOREIGN OPERATIONS QUESTION On 1 July 2021, Corkie Lid, an Australian company, acquired all the issued shares in Doogan Ltd, a company incorporated overseas. Exchange rates for the year ending 30 June 2022 are as follows: 1 July 2021 FC $1.00 = A$1.15 Average rate for the Year FC $1.00 = A$1.17 Ending Inventory Acquired (before year end) FC $1.00 = A$1.20 30 June 2022 FC$1.00 = A$1.22 The statement of profit and loss and other comprehensive income and statement of financial position for Doogan Lid are provided as follows. The accounts are stated in FC (foreign currency) dollars which is Doogan Ltd’s functional currency. Statement of Profit and Loss and Other Comprehensive Income Doogan Ltd For the year ending 30 June 2022 FCS Sales 30 000 000 Less Cost of Goods Sold: Inventory 1 July 2021 6 000 000 Add Purchases 24 000 000 Less Inventory 30 June 2022 -5 400 000 Cost of Goods Sold 24 600 000 Gross Profit 5 400 000 Less Expenses: Administration -900 000 Depreciation -1 200 000 Net Profit Before Tax 3 300 000 Less Income Tax Expense 1 500 000 Net Profit after Tax 1 800 000 Other Comprehensive Income Comprehensive Income 1 800 000