Cairo Ingot, Ltd. C. Cairo Ingot, Ltd., is the Egyptian subsidiary of Trans-Mediterranean Aluminum, a British multinational that fashions automobile engine blocks from Aluminum. Trans-Mediterraneans home reporting currency is the British pound. . Cairo Ingots December 31 balance sheet is shown below. At the date of this balance sheet the exchange rate between Egyptian pounds and British pounds sterling was E5.50/UK.

Assets		Liabilities and Net Worth
Cash	E 16,500,000	Accounts Payable	E 24,750,000
Accounts Receivable	33,000,000	Long-term debt	49,500,000
Inventory	49,500,000	Invested Capital	90,750,000
Net Plant and Equipment	66,000,000
	E165,000,0000		E165,000,000

What is Cairo Ingots contribution to the translation exposure of Trans-Mediterranean on December 31, using the current rate method? Calculate the translation exposure loss to Trans-Mediterranean if the exchange rate at the end of the following quarter is E6.00/. Assume all balance sheet accounts are the same at the end of the quarter as they were at the beginning.