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The Medicu Company of Nashville has a subsidiary in Indonesia, where the currency is the rupiah (Rp). Medicu uses FASB 52 or the Current Rate

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The Medicu Company of Nashville has a subsidiary in Indonesia, where the currency is the rupiah (Rp). Medicu uses FASB 52 or the Current Rate Method to translate its foreign operations. The current balance sheet of the Indonesian subsidiary, in thousands of rupiah, is: (a) Assume that the Indonesian subsidiary chooses its functional currency to be the U.S. \$. What are the accounting exposure and the translation gain/loss if the exchange rate devalues as Medicu expected? (4 points) (b) Assume that the Indonesian subsidiary chooses its functional currency to be the Indonesian rupiah. What are the accounting exposure and the translation gain/loss if the exchange rate devalues as Medicu expected? (4 points) (c) Does the Indonesian subsidiary of Medicu have any transaction exposure? If so, how much and what is the transaction gain or loss if the rupiah devalues as Medicu expected? (4 points) The Medicu Company of Nashville has a subsidiary in Indonesia, where the currency is the rupiah (Rp). Medicu uses FASB 52 or the Current Rate Method to translate its foreign operations. The current balance sheet of the Indonesian subsidiary, in thousands of rupiah, is: (a) Assume that the Indonesian subsidiary chooses its functional currency to be the U.S. \$. What are the accounting exposure and the translation gain/loss if the exchange rate devalues as Medicu expected? (4 points) (b) Assume that the Indonesian subsidiary chooses its functional currency to be the Indonesian rupiah. What are the accounting exposure and the translation gain/loss if the exchange rate devalues as Medicu expected? (4 points) (c) Does the Indonesian subsidiary of Medicu have any transaction exposure? If so, how much and what is the transaction gain or loss if the rupiah devalues as Medicu expected? (4 points)

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