Florida-Pure, K.K., the Japanese affiliate of a U.S. beverage company, mixes and bottles citrus drinks for sale in the Japanese domestic market. Florida-Pure K.K.'s Junc 30 balance sheet is:

Exchange rates for translating Florida Pure's balance sheet into U.S. dollars are:

Assuming no change in balance sheet accounts between June 30 and July 1, calculate the translation gain or loss by the currem-rate method (or by the temporal method, if more appropriate). Explain translation loss in terms of changes in the value of exposed accounts.

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Assets Liabilities and Net Worth Cash 90,000,000 Accounts payable 45,000,000 Accounts receivable 135,000,000 One-year bank loan 45,000,000 Inventory 135,000,000 Long-term yen bonds 90,000,000 Net plant and 180,000,000 Capital stock 180,000,000 equipment Retained earnings 180,000,000 540,000,000 540,000,000