Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please give me a right solution with all explenations and calculations . thank you so much !! 8. Bangkok Instruments, Ltd. (A). Bangkok Instruments, Ltd.,
please give me a right solution with all explenations and calculations . thank you so much !!
8. Bangkok Instruments, Ltd. (A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures instruments primarily for the oil and gas industry globally, though with recent commodity price increases of all kinds-including copper-its business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai baht (B) as of March 31 is as follows: Exchange rates for translating Bangkok Instruments' 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, calculate the gain or loss from translation by both the current rate method and the temporal method. Explain the translation gain or loss in terms of changes in the value of exposed accounts Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started