Bangkok Instruments, Ltd. (A). Bangkok instruments, Lid, the Thai subsidiary of a U.S. copporaben, is a seismic instrument manufacturer, Bangkok inatrumants manufoctures Ehe instruments primarily for the oll and gas industry globally=-hough wht recent commodiy proce increases of all kinds including copper, ts business has begun to grow rapidy. Sales are primarify to mutinatienal companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is shown in the popup window Fxchange rates for trandating Bangkok instruments' bolance sheot imo U.S. doliars are: B48.cors April 1 exchange rate, afier 25% devaluation. B36.00is March 31 exchange rate, before 25% devaluation. All inventory was acoured at this rate. B25 oos Hisforic exchange rate at which plant and equipment were acquied. The Thai baht dropped in value from B36.00/s to 84 . 00/5 between March 31 and Apri 1. Assuming no change in balance aheet accounts between these two days, cakculate ithe gain or kass frim translation by both the current rate method and the temperal method. Bangkok Instrunents transiated batance sheet using the current rate method is shown here. temporal method is shawn here, Explain the transiation gain of loss in torms of ehanges in phe valve of exposed accourts. Using the transiated talance shent under the current rate method, . What is the amount of transatice gain or loss? Enter a positive number for a gain and negave for a ioss (Round to the nearest dollar.) Using the tramslaled boance sheet under the temporal method, , What is the amount of transiation gain or less? Enter a positive number for a gain and negasive for a loss (Round to the nearett dodar.) The resuits in a translation gain, as opposed to the CTA loss found undor the because of the diferont exchange rates used againat net phant and equpment and the inventory line terns. This gain would be impossibie under the because al assets are exposed under that mathod, whireas the net plant asd equipenent and inventory at reievant historical ewchanges fases. (Select from ene drop-down menus.) Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method (a) Dollar retained eamings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click on the icon located on the top-right comer of the data table in order to copy its contents into a spreadsheet. Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Temporal Method (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. (c) Under the temporal method, the translation gain (loss) would be closed into retained eamings through the income statement rather than left as a separate line item as shown here. Click on the icon located on the top-right comer of the data table in order to copy its contents into a spreadsheet
