Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help answer these as much as you can Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedplease help answer these as much as you can

Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the 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 bahts (B) as of March 31 is shown in the popup window: Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are: B42.67/\$ April 1 exchange rate, after 25% devaluation. B32.00/\$ March 31 exchange rate, before 25% devaluation. All inventory was acquired at this rate. B21.00/\$ Historic exchange rate at which plant and equipment were acquired. The Thai baht dropped in value from B32.00/\$ to B42.67/\$ 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. Bangkok Instruments' translated balance sheet using the current rate method is shown here, , and the one using the temporal method is shown here, . Explain the translation gain or loss in terms of changes in the value of exposed accounts. Using the translated balance sheet under the current rate method,_, , what is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. $ (Round to the nearest dollar.) Data table contents into a spreadsheet. (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. (c) Under the temporal method, the translation gain (loss) would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Bangkok Instruments, Ltd.(A). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the 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 bahts (B) as of March 31 is shown in the popup window: Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are: B42.67/\$ April 1 exchange rate, after 25% devaluation. B32.00/\$ March 31 exchange rate, before 25% devaluation. All inventory was acquired at this rate. B21.00/\$ Historic exchange rate at which plant and equipment were acquired. The Thai baht dropped in value from B32.00/\$ to B42.67/\$ 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. Bangkok Instruments' translated balance sheet using the current rate method is shown here, , and the one using the temporal method is shown here, . Explain the translation gain or loss in terms of changes in the value of exposed accounts. Using the translated balance sheet under the current rate method,_, , what is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. $ (Round to the nearest dollar.) Data table contents into a spreadsheet. (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. (c) Under the temporal method, the translation gain (loss) would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Bangkok Instruments' Translation Gain (Loss) After Depreciation of the Baht: Current Rate Method (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost And Management Audit

Authors: Dr Veena Soni

1st Edition

6202551992, 978-6202551991

More Books

Students also viewed these Accounting questions