14. Translation current rate Please refer to Table 4 in the datafile. If Euro Trade applies the current rate method of translation, then it will make a translation if the EUR/USD exchange rate .. (Note: gain=equity increases, loss=equity decreases) a) gain; increases b) impossible to determine c) loss; increases d) loss; decreases Euro Trade America is a US subsidiary of a Dutch company The subsidiary uses USD as functional currency and its balance sheet has to be translated into EUR every quarter USD Assets Accounts receivable Inventory Ne plant equipment Total 2 000 000 1 500 000 3100 000 2 400 000 9000 000! Liabilities Accounts payable Short-term bank debt Long-term debt Common stock 900 000 1 800 000 2 300 000 4 000 000 900D OOD