Contribution to the translation exposure

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Reference no: EM131926900

GKM Ltd. is the Singapore subsidiary of GKM USA, an American multinational chemical company. GKM Ltd's reporting currency is the USD. GKM Ltd.'s December 31 balance sheet is shown below. At the date of this balance sheet, the exchange rate between the SGD and the USD was SGD 1.30/USD.

What is GKM Ltd.'s contribution to the translation exposure of GKM USA on December 31 using the temporal method?

Assets

Cash SGD 112,000

A/R SGD 82,800

Inventory SGD 144,700

Plant & equipment SGD 543,000

Total SGD 882,500

Liabilities & Shareholders’ equity

A/P SGD 78,000

ST bank debt SGD 23,000

LT debt SGD 81,500

Capital stock SGD 700,000

Total SGD 882,500

a) -USD 538,461

b) +USD 9,461.5

c) -USD 700,000

d) +USD 12,300

Reference no: EM131926900

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