Montevideo Products S.A. is the Uruguayan subsidiary of a US manufacturing company. Its balance sheet for January 1 follows. The January 1 exchange rate between the USD and the UYU (Uruguayan peso) is UYU20/USD1.

Assets	Liabilities and Net Worth
Cash	UYU60,000	Current liabilities	UYU30,000
Accounts receivable	UYU120,000	Long term debt	UYU90,000
Inventory	UYU120,000	Capital stock	UYU300,000
Net plant & equipment	UYU240,000	Retained earnings	UYU120,000
Total	UYU540,000	Total	UYU540,000

Determine Montevideos contribution to the translation exposure of its parent on January 1 using the current rate method.

Calculate Montevideos contribution to its parents translation gain or loss if the exchange rate on December 31 is UYU32/USD1. Assume all UYU accounts remain as they were at the beginning of the year. Where and how would you record any difference?

Calculate Montevideos contribution to its parents translation gain or loss if the exchange rate on December 31 is UYU12/USD1. Assume all UYU accounts remain as they were at the beginning of the year. Where and how would you record any difference?