Bangkok Ingot, Ltd. Is the Thai subsidiary of Trans-Mediterranean Aluminum, a U.S. Multinational that fashions automobile engine block from aluminum. Bangkok Ingots December 31 balance sheet measured in Thai Baht (THB) is shown below. At the date of this balance sheet the exchange rate between Thai Baht and U.S. dollar was $0.028/THB.

Asset Liabilities and Equity

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Cash 5,000 Accounts payable 25,000

Accounts Receivable 25,000 Long-term debt 40,000

Inventory 35,000 Equity 45,000

Net Plant & equipment 45,000

Total assets 110,000 Total L&E 110,000

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Assume that Bangkok Ingots balance sheet does not change during the next year, but the exchange rate changes to $0.022/THB. Calculate the translation exposure (gain/loss) to Trans-Mediterranean Aluminum using the current rate method. Treat $0.028/THB as also the historical exchange rate in this case.