Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the oil and gas industry globally, though with recent commodity price increases of all kindsincluding copperits business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is as follows: Bangkok Instruments, Ltd. Balance Sheet, March 1, thousands of Thai bahts Liabilities and Net Worth Cash B24,000 Accounts payable B18,000 Bank loans 60,000 Inventory Common stock 18.000 Net plant and Retained 72,000 B168,000 B168,000 Exchange rates for translating Siam Toy's balance sheet into U.S. dollars are: Assets Accounts receivable 36,000 48.000 equipment 60,000 earings B40.00$ April 1st exchange rate after 25% devaluation. B30.00/$ March 31st exchange rate, before 25% devaluation. Al inventory was acquired at this rate. B20.00/$ Historic exchange rate at which plant and equipment were acquired. The Thai baht dropped in value from B301$ to B40$ between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method. Explain the translation gain or loss in terms of changes in the value of exposed accounts. Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the oil and gas industry globally, though with recent commodity price increases of all kindsincluding copperits business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is as follows: Bangkok Instruments, Ltd. Balance Sheet, March 1, thousands of Thai bahts Liabilities and Net Worth Cash B24,000 Accounts payable B18,000 Bank loans 60,000 Inventory Common stock 18.000 Net plant and Retained 72,000 B168,000 B168,000 Exchange rates for translating Siam Toy's balance sheet into U.S. dollars are: Assets Accounts receivable 36,000 48.000 equipment 60,000 earings B40.00$ April 1st exchange rate after 25% devaluation. B30.00/$ March 31st exchange rate, before 25% devaluation. Al inventory was acquired at this rate. B20.00/$ Historic exchange rate at which plant and equipment were acquired. The Thai baht dropped in value from B301$ to B40$ between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method. Explain the translation gain or loss in terms of changes in the value of exposed accounts
