Kanab Co. and Zion Co. are U.S. companies that engage in much business within the United States and are about the same size. They both conduct some international business as well.

Kanab Co. has a subsidiary in Canada that will generate earnings of about C$30 million in each of the next five years. Kanab Co. also has a U.S. business that will receive about C$4 million (after costs) in each of the next five years as a result of exporting products to Canada that are denominated in Canadian dollars.

Zion Co. has a subsidiary in Mexico that will generate earnings of about 4 million pesos in each of the next five years. Zion Co. also has a business in the United States that will receive about 250 million pesos (after costs) in each of the next five years as a result of exporting products to Mexico that are denominated in Mexican pesos.

The salvage value of Kanab's Canadian subsidiary and Zion's Mexican subsidiary will be zero in five years. The spot rate of the Canadian dollar is $0.65 while the spot rate of the Mexican peso is $0.11. Assume the Canadian dollar could appreciate or depreciate against the U.S. dollar by about 6 percent in any given year, while the Mexican peso could appreciate or depreciate against the U.S. dollar by about 10 percent in any given year. Which company is subject to a higher degree of translation exposure? Explain. Round your answers to the nearest dollar.

The estimated dollar value of Kanab's translated earnings is $ .

The estimated dollar value of Zion's translated earnings is $ .

-Select-Kanab Co.Zion Co.Item 3 is subject to a higher degree of translation exposure.