The Polish subsidiary of a U.S. parent has the following balance sheet (in Polish zloty, Z):

Cash	Z 200,000	Current liabilities	Z 400,000
Receivables	300,000	Long-term debt	100,000
Inventory	400,000
Net plant & equipment	500,000	Owners equity	900,000
	Z 1,400,000		Z 1,400,000

The zloty drops in value from Z4/$ to Z5/$.

a.If the current rate method is used is there an increase or decrease in the value of the U.S. parents investment in the subsidiary? How much?

b.If the current rate method is used, what is the accounting exposure?

c.If the current rate method is used, what is the translation gain/loss?

d.If the temporal method is used, what is the accounting exposure?

e.If the temporal method is used, what is the translation gain/loss?