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 has begun to grow rapidly. Sales are primarily to mul- increases of all kinds --including copper-its business tinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thou- sands of Thai baht (B) as of March 31 is as follows: the si 1 e ? Bangkok Instruments, Ltd. Balance Sheet, March 1, thousands of Thai bahts Assets Liabilities and Net Worth Accounts Cash B24,000 payable B18,000 Accounts 36,000 Bank loans 60,000 Common 48,000 stock 18,000 Retained 60,000 earnings B168,000 Teceivable Inventory Net plant & equipment 72,000 B168,000 Translation Exposure CHAPTER 11 349 Exchange rates for translating Siam Toy's balance sheet into U.S. dollars are: B40.00/$ April 1st exchange rate after 25% devaluation. B30.00/$ March 31st exchange rate, before 25% devaluation. All inventory was acquired at this rate. B20.00/$ Historic exchange rate at which plant and equipment were acquired. 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- late the gain or loss from translation by both the cur- rent rate method and the temporal method. Explain the translation gain or loss in terms of changes in the value of exposed accounts