Salalah Corporation, the Omani affiliate of a U.S manufacturer, has the balance sheet shown below. The current exchange rate is $ 3.25= OMR 1.
Assets OMR Liabilities OMR
Cash Accounts Receivables
Inventories Fixed assets net
Total 35,000
80,000
120,000
205,000
440,000 Accounts payable
Long-term debt
Stockholders’ equity

Total 115,000
145,000
180,000

440,000

Required:

A. If the OMR appreciate by 30 percent, what would be the translation effects under current- noncurrent method?

B. If the OMR depreciated by 25 percent, what would be the translation effects under the monetary- nonmonetary method?