How do we Report This? Southwestern Corporation operates throughout Texas buying and selling widgets. To expand into more profitable markets, the company recently decided to open a small subsidiary in the nearby country of Gualos. The currency in Gualos is the vilsek. For some time, the government of that country held the exchange rate constant: 1 vilsek equaled $0.20 (or 5 vilseks equaled $1,00). Initially Southwestern invested cash in this new operation; its $90,000 was converted into 450,000 vilseks ($90,000 x 5). Southwestern used one-third of this money (150,000 vilseks, or $30,000) to purchase land to hold for the possible construction of a plant, invested one-third in short-term marketable securities, and spent one-third in acquiring inventory for future resale. Shortly thereafter, the Gualos government officially revalued the currency so that 1 vilsek was worth $0.23. Because of the strength of the local economy, the viklsek gained buying power in relation to the U.S. dollar. The vilsek then was considered more valuable than in the past. Southwestern