Here is given a balance sheet of a North Macedonian subsidiary of a US parent company. Calculate translation gain or loss under current rate method if the exchange rate changes from 50 denar/US....

Extracted text: Here is given a balance sheet of a North Macedonian subsidiary of a US parent company. Calculate translation gain or loss under current rate method if the exchange rate changes from 50 denar/US. dollar to 60 denar/U.S. dollar? (H denotes historical exchange rate, C denotes current exchange rate). Since Cumulative Translation Adjustment (CTA) Account is not zero at the beginning, you have also to calculate it before the devaluation happens. Balance Sheet Before Devaluation Exchange Rate (MKD) (MKD/USS) After Devaluation Exchange Rate (MKD/USS) Assets Маccdonian Denar Statement MKD 27,000,000 Translated Translated Ассounts Ассounts US Dollars US Dollars 49.00 (H) 50.00 (C) 48.00 (H) 50.00 (C) 49.00 (H) 60.00 (C) 48.00 (H) 60.00 (C) Cash Ассounts 151,200,000 Receivable 45.00 (H) 50.00 (C) 40.00 (H) 50.00 (C) 45.00 (H) 60.00 (C) 40.00 (H) 60.00 (C) Inventory 43,200,000 Net Plant and 86,400,000 Equipment Tntal MKD 307,800,000 Liabilities & Net Worth Ассounts 48.50 (H) 50.00 (C) 47.50 (H) 48.50 (H) 60.00 (C) 47.50 (H) 60.00 (C) 31.25 (H) 60.00 (C) 37.50 (H) MKD 37,800,000 Payable Bank Loans 108,000,000 50.00 (C) 31.25 (H) 50.00 (C) 37.50 (H) 50.00 (C) Common Stock 60,000,000 Retained 102,000,000 Earnings 60.00 (C) Cumulative Translation Adjustment Account (Loss) Tntal MKD 307,800,000 Instead, the translation gain(loss) arising from the fall in the value of Macedonian Denar can be calculated as follows: Net Exnosed Assets (US S) Percentage Change in the Value of Macedonian Denar Increase in Translation Gain (Loss) after Devaluation of the Macedonian Denar