MNC$.$ The subsidiary is at the end of its first year of operation. The historical exchange rate is $$\frac{1\mathrm{.}60}{}1\mathrm{.}00$ and the most recent exchange rate is $$\frac{1\mathrm{.}50}{}.$

Local Currency Current Rate

Balance Sheet

Income Statement

Sales Revenue

Depreciation

NOI

$\{\begin{array}{ccc}\text{:}[1,& 50,\text{\$}2,& 32]\\ 0,& 3\end{array}$

Tax$(40\%)$

$600,$$$929$

Profit after tax

Foreign Exchange gain $($loss$)$

Net income

Dividends

Addition to Retained Earnings

$900$

$${?}^{1,39}$