1. Montevideo Products S.A. is the Uruguayan subsidiary of a US manufacturing company. Its balance sheet for January 1 follows. The January 1 exchange rate between the USD and the UYU (Uruguayan peso) is UYU20/USD1. Assets Liabilities and Net Worth Cash Accounts receivable Inventory Net plant and equipment Total UYU60,000 UYU120,000 UYU120,000 UYU240,000 UYU540.000 Current liabilities Long term debt Capital stock Retained earnings Total UYU30,000 UYU90,000 UYU300,000 UYU120,000 UYU540,000 Determine Montevideo's contribution to the translation exposure of its parent on January 1 using the current rate method. Calculate Montevideo's contribution to its parent's translation gain or loss if the exchange rate on December 31 is UYU32/USD1. Assume all UYU accounts remain as they were at the beginning of the year and retained earnings equal USD4615.00. Where and how would you record any difference? Calculate Montevideo's contribution to its parent's translation gain or loss if the exchange rate on December 31 is UYU12/USD1. Assume all UYU accounts remain as they were at the beginning of the year and retained earnings equal USD7500.00. Where and how would you record any difference? a. b. c