XYZ Corp. is an United States manufacturer that owns the Chinese Li Corp. Although Li Corp. operates in China, its functional currency is the dollar. Which translation method should be used (current rate or temporal?)

When Li Corp. issued its common stock, the exchange rate was 7.50 CNY / USD

When Li Corp. purchased its property plant and equipment, the exchange rate was 7.25 CNY / USD

When Li Corp. purchased its inventory, the exchange rate was 8.00 CNY / USD

The exchange rate for Li Corp.s retained earnings is 7.75 CNY / USD

Translate Li Corp.s balance sheet from Chinese Yuan to U.S. Dollars for the period ending December 31, and state the amount of the translation gain or loss.

In CNY:

Cash1,000,0000

Accounts Receivable2,500,000

Inventory3,000,000

Plant and Equipment5,000,000

Accounts Payable3,500,000

Long Term Debt4,500,000

Common Stock1,500,000

Retained Earnings 2,000,000