Bangkok Instruments, Ltd.(B). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the oil and gas industry globally, though with recent commodity price increases of all kindsincluding copperits business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is shown in the popup window: Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are: B30.83/$ April 1 exchange rate, after 20% appreciation. B37.00/$ March 31 exchange rate, before 20% appreciation. All inventory was acquired at this rate. B25.00/$ Historic exchange rate at which plant and equipment were acquired. The Thai baht appreciated in value from B37.00/S to B30.83/$ between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method Ranakok Instruments' translated balance sheet using the current rate method is shown here Bangkok Instruments, Ltd. Balance Sheet, March 1 Assets Liabilities & Net Worth Cash B24,000,000 Accounts payable B17,000,000 Accounts receivable 37,000,000 Bank loans 60,000,000 Inventory 47,000,000 Common stock 20,000,000 Net plant & equipment 61,000,000 Retained earnings 72,000,000 B169,000,000 B169,000,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Bangkok Instruments' Translation Gain (Loss) After Appreciation of the Baht: Current Rate Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/$) Accounts ($) Cash B24,000,000 37.00 $648,649 30.83 $778,463 Accounts receivable 37,000,000 37.00 1,000,000 30.83 1,200,130 Inventory 47,000,000 37.00 1,270,270 30.83 1,524,489 Net plant and equipment 61,000,000 37.00 1,648,649 30.83 1,978,592 Total B169,000,000 $4,567,568 $5,481,674 Liabilities and Net Worth Accounts payable B17,000,000 37.00 $459,459 30.83 $551,411 Bank loans 60,000,000 37.00 1,621,622 30.83 1,946,156 Common stock 20,000,000 25.00 800,000 25.00 800,000 Retained earnings 72,000,000 42.69 (a) 1,686,487 42.69 (b) 1,686,487 Translation adjustment (CTA) ? ? Total B169,000,000 $4,567,568 $5,481,674 (a) Dollar retained earnings before appreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before appreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Bangkok Instruments' Translation Gain (Loss) After Appreciation of the Baht: Temporal Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/$) Accounts ($) Cash B24,000,000 37.00 $648,649 30.83 $778,463 Accounts receivable 37,000,000 37.00 1,000,000 30.83 1,200,130 Inventory 47,000,000 37.00 1,270,270 37.00 1,270,270 Net plant and equipment 61,000,000 25.00 2,440,000 25.00 2,440,000 Total B169,000,000 $5,358,919 $5,688,863 Liabilities and Net Worth Accounts payable B17,000,000 37.00 $459,459 30.83 $551,411 Bank loans 60,000,000 37.00 1,621,622 30.83 1,946,156 Common stock 20,000,000 25.00 800,000 25.00 800,000 Retained earnings 72,000,000 29.06(a) 2,477,838 29.06 (b) 2,477,838 Translation gain (loss) (c) ? Total B169,000,000 $5,358,919 $5,688,863 (a) Dollar retained earnings before appreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before appreciation of the baht. (c) Under the temporal method, the translation gain (loss) would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Bangkok Instruments, Ltd.(B). Bangkok Instruments, Ltd., the Thai subsidiary of a U.S. corporation, is a seismic instrument manufacturer. Bangkok Instruments manufactures the instruments primarily for the oil and gas industry globally, though with recent commodity price increases of all kindsincluding copperits business has begun to grow rapidly. Sales are primarily to multinational companies based in the United States and Europe. Bangkok Instruments' balance sheet in thousands of Thai bahts (B) as of March 31 is shown in the popup window: Exchange rates for translating Bangkok Instruments' balance sheet into U.S. dollars are: B30.83/$ April 1 exchange rate, after 20% appreciation. B37.00/$ March 31 exchange rate, before 20% appreciation. All inventory was acquired at this rate. B25.00/$ Historic exchange rate at which plant and equipment were acquired. The Thai baht appreciated in value from B37.00/S to B30.83/$ between March 31 and April 1. Assuming no change in balance sheet accounts between these two days, calculate the gain or loss from translation by both the current rate method and the temporal method Ranakok Instruments' translated balance sheet using the current rate method is shown here Bangkok Instruments, Ltd. Balance Sheet, March 1 Assets Liabilities & Net Worth Cash B24,000,000 Accounts payable B17,000,000 Accounts receivable 37,000,000 Bank loans 60,000,000 Inventory 47,000,000 Common stock 20,000,000 Net plant & equipment 61,000,000 Retained earnings 72,000,000 B169,000,000 B169,000,000 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Bangkok Instruments' Translation Gain (Loss) After Appreciation of the Baht: Current Rate Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/$) Accounts ($) Cash B24,000,000 37.00 $648,649 30.83 $778,463 Accounts receivable 37,000,000 37.00 1,000,000 30.83 1,200,130 Inventory 47,000,000 37.00 1,270,270 30.83 1,524,489 Net plant and equipment 61,000,000 37.00 1,648,649 30.83 1,978,592 Total B169,000,000 $4,567,568 $5,481,674 Liabilities and Net Worth Accounts payable B17,000,000 37.00 $459,459 30.83 $551,411 Bank loans 60,000,000 37.00 1,621,622 30.83 1,946,156 Common stock 20,000,000 25.00 800,000 25.00 800,000 Retained earnings 72,000,000 42.69 (a) 1,686,487 42.69 (b) 1,686,487 Translation adjustment (CTA) ? ? Total B169,000,000 $4,567,568 $5,481,674 (a) Dollar retained earnings before appreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before appreciation of the baht. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Bangkok Instruments' Translation Gain (Loss) After Appreciation of the Baht: Temporal Method March 31 April1 Exchange Translated Exchange Translated Assets In Bahts (B) Rate (B/$) Accounts ($) Rate (B/$) Accounts ($) Cash B24,000,000 37.00 $648,649 30.83 $778,463 Accounts receivable 37,000,000 37.00 1,000,000 30.83 1,200,130 Inventory 47,000,000 37.00 1,270,270 37.00 1,270,270 Net plant and equipment 61,000,000 25.00 2,440,000 25.00 2,440,000 Total B169,000,000 $5,358,919 $5,688,863 Liabilities and Net Worth Accounts payable B17,000,000 37.00 $459,459 30.83 $551,411 Bank loans 60,000,000 37.00 1,621,622 30.83 1,946,156 Common stock 20,000,000 25.00 800,000 25.00 800,000 Retained earnings 72,000,000 29.06(a) 2,477,838 29.06 (b) 2,477,838 Translation gain (loss) (c) ? Total B169,000,000 $5,358,919 $5,688,863 (a) Dollar retained earnings before appreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before appreciation of the baht. (c) Under the temporal method, the translation gain (loss) would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet