6) A foreign operation has the following local inflation rates: Year 1: 10\% Year 2: 20\% Year 3: 30% Year 4: 10\% Year 5:15\% A) What is the applicable cumulative inflation rate that should be used for reporting as of end of year 5 . B) What method will be used for remeasurement or translation of the foreign operation's foreign currency financial statements. 7. XYZ, a US company has a subsidiary in Korea. The Korean sub sells inventory to a Japanese company with the sale denominated in US dollars. Between the date of sale and the date the receivable is collected the Korean won strengthens 10% against the US dollar. Explain if there is a foreign exchange gain or loss or no FX impact and why