Turkey was one of the few remaining highly inflationary countries at the beginning of the 21st century. Annual inflation rates and selected exchange rates between the Turkish lira (TL) and US dollar during the 2000–2002 period were as follows: Assume that a US-based company established a subsidiary in Turkey on 1 January 2000. The US parent sent the subsidiary US$1,000 on 1 January 2000 to purchase a piece of land at a cost of TL542,700,000 (TL542,700/US$ × US$1,000 = TL542,700,000).
Assuming no other assets or liabilities, what are the annual and cumulative translation gains or losses that would be reported under each of three possible translation approaches?