2. Under the temporal method, what is the total dollar value of exposed assets?

3. What is the value of Net exposed assets (in pounds) under the temporal method?

4. What is the dollar value of Net exposed assets (under the temporal method)?

5. If the pound depreciates, will Worldwide realize a translation gain or translation loss?

6. What is the dollar amount of the gain (or loss), assuming the temporal translation method, if the pound depreciates to $1.5629/ (12% depreciation)?

Castlerock Exports is a British subsidiary of the Worldwide Trade Company, a U.S. company that specializes in catalog sales of luxury merchandise from around the world. The balance sheet for Castlerock Exports, as of December 31, 2004 is shown below. The $/ exchange rate as of December 31, 2004 was $1.7760/. Castlerock Exports, Ltd Balance Sheet, December 31, 2004 Assets Cash Accounts Receivable Inventory Net fixed assets Total Assets Pounds () 600,000 1,350,000 1,500,000 375,000 3,825,000 Liabilities & Equity Accounts payable Notes Payable Long-term debt Common Stock Retained Earnings Cum. Translation Adjustment Total Liabilities and Equity 450,000 600,000 700,000 1,200,000 875,000 3,825,000 Assuming Worldwide Trade Company uses the temporal method for translation, what is the total value of exposed assets in Pounds