XMX India is the Indian subsidiary of ABC, a British multinational. ABC's reporting currency is the British pound. XMX India's balance sheet on 31 December 2020 is shown in the table below. The exchange rate between the Indian rupee and the British pound was 102.50 rupees per pound on 31 December 2020 and 112.75 rupees per pound on 31 March 2021. Assume that the rupee values of all entries in XMX India's balance sheet did not change between 31 December 2020 and 31 March 2021.

 

Assets		Value in Rupees
Cash		307,500,000
Accounts receivable		615,000,000
Inventory		922,500,000
Net plant and equipment		1,230,000,000
Total		3,075,000,000
Liabilities and Net Worth
Accounts payable		256,250,000
Short-term debt		666,250,000
Long-term debt		563,750,000
Invested capital		1,588,750,000
Total		3,075,000,000

(i) If ABC uses the current rate method for compiling its consolidated balance sheet, did it make a gain or incur a loss from its translation exposure to XMX India between 31 December 2020 and 31 March 2021? Compute the pound value of ABC's translation gain or loss.

                                                                                                                         

(ii) If ABC uses the temporal method for compiling its consolidated balance sheet, did it make a gain or incur a loss from its translation exposure to XMX India between 31 December 2020 and 31 March 2021? Compute the pound value of ABC's translation gain or loss.