Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seis- mic instrument manufacturer. Bangkok Instruments manufactures 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 mul- tinational companies based in the United States and ing of the year. remain as As Europe. Bangkok Instruments' balance sheet in thou- sands of Thai baht (B) as of March 31 is as follows: C re In Bangkok Instruments, Ltd. Balance Sheet, March 1, thousands of Thai bahts Assets Liabilities and Net Worth Accounts B24,000 payable B18,000 ed Cash Accounts receivable Inventory Net plant & stock 36,000 Bank loans 60,000 Tunction Common 48,000 18,000 Retained 60,000 earnings 72,000 B168,000 equipment B168,000 Exchange rates for translating Siam Toy's balance sheet into U.S. dollars are: od B40.00/$ April 1st exchange rate after 25% obiztuo mot devaluation. To 2011 , . yairogor inoru at this rate. ol 12 do B20.00/$ Historic exchange rate at which plant and equipment were acquired. a subivibnlivog zit www Tisan 20 The Thai baht dropped in value from B30/$ to B40/$ between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calcu- st late the gain or loss from translation by both the cur- 10 rent rate method and the temporal method. Explain od the translation gain or loss in terms of changes in the value of exposed accounts. i dogovolto