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 kinds including copper, its 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 shown in the popup window:. Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are: B42.67/$ April 1 exchange rate, after 25% devaluation. B32.00/$ March 31 exchange rate, before 25% devaluation. All inventory was acquired at this rate. B22.00/$ Historic exchange rate at which plant and equipment were acquired. The Thai baht dropped in value from B32.00/$ to B42.67/$ 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. Bangkok Instruments' translated balance sheet using the current rate method is shown here, and the one using the temporal method is shown here, Explain the translation gain or loss in terms of changes in the value of exposed accounts. Using the translated balance sheet under the current rate method,, what is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. (Round to the nearest dollar.) $ Bangkok Instruments, Ltd. Balance Sheet, March 1 Assets Liabilities & Net Worth Cash B23,000,000 Accounts payable B18,000,000 Accounts receivable 37,000,000 Bank loans 59,000,000 Inventory 49,000,000 Common stock 19,000,000 Net plant & equipment 60,000,000 Retained earnings 73,000,000 B169,000,000 B169,000,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. 0 Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April1 Exchange Rate (B/$) Translated Accounts ($) Exchange Rate (B/$) Translated Accounts ($) In Bahts (B) Assets Cash B23,000,000 32.00 $718,750 42.67 $539,020 Accounts receivable 37,000,000 32.00 1,156,250 42.67 867,120 Inventory 49,000,000 32.00 1,531,250 42.67 1,148,348 Net plant and equipment 60,000,000 32.00 1,875,000 42.67 1,406,140 Total B169,000,000 $5,281,250 $3,960,628 Liabilities and Net Worth Accounts payable B18,000,000 32.00 $562,500 42.67 $421,842 Bank loans 59,000,000 32.00 1,843,750 42.67 1,382,704 Common stock 19,000,000 22.00 863,636 22.00 863,636 Retained earnings 73,000,000 36.29 (a) 2,011,364 36.29 (b) 2,011,364 Translation adjustment (CTA) - ? ? Total B169,000,000 $5,281,250 $3,960,628 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click for right por doto table in order oproedehoot Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Temporal Method March 31 April1 Exchange Rate (B/$) Translated Accounts ($) Exchange Rate (B/$) Translated Accounts ($) In Bahts (B) Assets Cash B23,000,000 32.00 $718,750 42.67 $539,020 Accounts receivable 37,000,000 32.00 1,156,250 42.67 867,120 Inventory 49,000,000 32.00 1,531,250 32.00 1,531,250 Net plant and equipment 60,000,000 22.00 2,727,273 22.00 2,727,273 Total B169,000,000 $6,133,523 $5,664,663 Liabilities and Net Worth Accounts payable B18,000,000 32.00 $562,500 42.67 $421,842 Bank loans 59,000,000 32.00 1,843,750 42.67 1,382,704 Common stock 19,000,000 22.00 863,636 22.00 863,636 Retained earnings 73,000,000 25.49 (a) 2,863,637 25.49 (b) 2,863,637 Translation gain (loss) (c) ? Total B169,000,000 $6,133,523 $5,664,663 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. (c) Under the temporal method, the translation gain (loss) would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. U Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method March 31 April1 Translated Accounts ($) Exchange Rate (B/$) 32.00 Exchange Rate (B/$) Translated Accounts ($) In Bahts (B) Assets Cash B23,000,000 $718,750 42.67 $539,020 Accounts receivable 37,000,000 32.00 1,156,250 42.67 867,120 Inventory 49,000,000 32.00 1,531,250 42.67 1,148,348 Net plant and equipment 60,000,000 32.00 1,875,000 42.67 1,406,140 Total B169,000,000 $5,281,250 $3,960,628 Liabilities and Net Worth Accounts payable B18,000,000 32.00 $562,500 42.67 $421,842 Bank loans 59,000,000 32.00 1,843,750 42.67 1,382,704 Common stock 19,000,000 22.00 863,636 22.00 863,636 Retained earnings 73,000,000 36.29 (a) 2,011,364 36.29 (b) 2,011,364 Translation adjustment (CTA) ? ? Total B169,000,000 $5,281,250 $3,960,628 (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. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet