Vincent’s Folly, a yo-yo manufacturer based in Canada, is owned by YoBeta, Inc., of the United States. Vincent’s balance sheet at the current exchange rate of C$1.60/$ is shown as follows: 

a. Identify YoBeta’s exposed assets, liabilities, and net exposed assets under ASC 830–30 Translation of Financial Statements.

b. Identify the impact of a depreciation of the U.S. dollar from C$1.60/$ to C$1.50/$ on YoBeta’s consolidated balance sheet.

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C$ value $ value at C$1.60/$ $ value at Translation C$1.50/$ gain/loss Assets Cash & equivalents Accounts receivable Inventory C$320,000 $200,000 C$160,000 $100,000 C$640,000 $400,000 Plant & equipment C$480,000 $300,000 Total assets C$1,600,000 $1,000,000 Liabilities Accounts payable C$320,000 $200,000 Wages payable C$160,000 $100,000 Net worth C$1,120,000 $700,000 Liabilities & net worth C$1,600,000 $1,000,000