Tea Inc, an 80% subsidiary of Karkade Plc set up on 1 January 2018, prepares its accounts in the currency "S". The financial statements of Tea as at 31 December 2018 are given as follows: Statement of financial position as at 31 December 2018 Fixed assets Less accumulated depreciation Net book value Stock Other net current assets Current assets Long-term liabilities 8% debentures 10,800 (2,400) 8,400 24,000 6,600 30,600 Share capital Profit for the year Dividends paid (18.000) 21,000 15,000 9,000 (3.000) 21.000 Statement of comprehensive income for the year ended 31 December 2018 S Turnover 36,000 Cost of sales Opening stock 21,600 Purchases 21,000 Closing stock (24,000) (18.600) Gross profit 17,400 General expenses (600) Depreciation (2,400) (3.000) Profit before tax 14,400 Tax (5.400) Profit after tax 9,000 The exchange rates are given as follows: Date S to 1 January 2018 3 Ordinary shares issued and opening stock purchased 1 March 2018 5 Fixed assets purchased 1 September 2018 6 Closing stock for 2018 bought 31 December 2018 8 Dividends paid Average 2018 (b) Translate the statement of financial position for Tea Inc using the temporal method. Explain how the foreign exchange difference arises under the temporal method