Bangkok Ingot, LTd is the Thai Subsidiary of Trans-Mediterranean Aluminum, a U.S. Multinational that fashions automobile engine block from aluminum. Bangkok Ingot's Dec 31 balance sheet measured in Thai Baht (THB) is shown below. At the date of this balance sheet the exchange rate between Thai Baht and U .S. dollar was 0.028/THB.
Assets: Liabilities and Equity
Cash 5,000 Long-Term Debt 40,000
Accounts Rec 25,000 Equity 45,000
Inventory 35,000 Accounts Payable 25,000
Net Plant & Equip 45,000
Total Assets: 110,000 Total L&E 110,000
Assume that Bangkok Ingot's balance sheet does not change during the next year, but the exchange rate changes to 0.022/THB Calculate the translation exposure (gain/loss) to Trans-Mediterranean Aluminum using the current rate method. Treat 0.028/THB as also the historical exchange rate in this case. PLEASE SHOW ALL WORK.