This is International Accounting class and question about the translation part.

I want to know exacthow to calculate"Remeasurement gain or loss" on Temporal Method, and "Cumulative Translation Adjustment" on Current Rate Method.

There is answer, I just want to know how to get that.

Translation Assumptions Use the following assumptions to translate the attached financial statements It is the company's first year of operations Capital Stock was issued and PP&E purchased on January 1, year 1 Ending Inventory was purchased on November 10 , year 1 Purchases were made evenly throughout the year Gumbo Corp: USD/BRL January 1, Year 1 July 1, year 1 Average for year 1 November 10, Year 1 December 1, Year 1 December 31, Year 1 4.00 4.10 4.07 4.15 4.20 4.21 CURRENT Rate Method Sales COGS Gross Profit Depreciation expense Other Operating expenses Income before tax Income taxes Net Income BRL X Rate 2,000,000 4.07 (600,000) 4.07 1,400,000 4.07 (100,000) 4.07 (150,000) 4.07 1,150,000 4.07 (90,000) 4.07 1,060,000 Retained earnings 1/1/Y1 Net Income , Year 1 Dividends, 7/1/Y1 Dividends, 12/1/Y1 Retained Earnings 12/31/Y1 1,060,000 (35,000) (35,000) 990,000 Cash Receivables Inventory Plant and Equipment Less Accumulated Depreciation Total Assets 400,000 450,000 750,000 1,000,000 (100,000) 2,500,000 4.21 4.21 4.21 4.21 4.21 1,684,000 1,894,500 3,157,500 4,210,000 (421,000) 10,525,000 Accounts Payable Long-term Debt Common Stock Retained Earnings 12/31/Y1 Cummulative Translation Adjustment Total Liabilities and stockholders' Equity 10,000 1,000,000 500,000 990,000 4.21 4.21 4.00 42,100 4,210,000 2,000,000 4,023,700 249,200 10,525,000 2,500,000 4.10 4.20 USD 8,140,000 (2,442,000) 5,698,000 (407,000) (610,500) 4,680,500 (366,300) 4,314,200 4,314,200 (143,500) (147,000) 4,023,700 Gumbo Corp: USD/BRL January 1, Year 1 July 1, year 1 Average for year 1 November 10, Year 1 December 1, Year 1 December 31, Year 1 4.00 4.10 4.07 4.15 4.20 4.21 Temporal Method 1,060,000 USD 8,140,000 (2,382,000) 5,758,000 (400,000) (610,500) 4,747,500 (366,300) (51,800) 4,329,400 Retained earnings 1/1/Y1 Net Income , Year 1 Dividends, 7/1/Y1 Dividends, 12/1/Y1 Retained Earnings 12/31/Y1 1,060,000 (35,000) (35,000) 990,000 ### 4,329,400 (143,500) (147,000) 4,038,900 Cash Receivables Inventory Plant and Equipment Less Accumulated Depreciation Total Assets 400,000 450,000 750,000 1,000,000 (100,000) 2,500,000 4.21 4.21 4.15 4.00 4.00 1,684,000 1,894,500 3,112,500 4,000,000 (400,000) 10,291,000 Accounts Payable Long-term Debt Common Stock Retained Earnings 12/31/Y1 Total Liabilities and stockholders' Equity 10,000 1,000,000 500,000 990,000 2,500,000 4.21 4.21 4.00 42,100 4,210,000 2,000,000 4,038,900 10,291,000 Sales COGS Gross Profit Depreciation expense Other Operating expenses Income before tax Income taxes Remeasurement Gain / Loss Net Income BRL X Rate 2,000,000 4.07 (600,000) xxxx 1,400,000 (100,000) 4.00 (150,000) 4.07 1,150,000 (90,000) 4.07 4.10 4.20 0 740,000 3,115,400 2,978,200 137,200 Schedule A Calculations of COGS BRL Beginning Inventory + Purchases - Ending Inventory = COGS X Rate 1,350,000 750,000 (600,000) XXXXXXX USD 4.07 4.15 5,494,500 3,112,500 2,382,000