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. Assets Cash Accounts Receivable Inventory Net Plant and Equipment Total Liabilities & Net Worth Accounts Payable Bank Loans Common Stock Retained Earnings Cumulative Translation Adjustment Account (Loss) Macedonian (MKD) Denar Statement MKD 27,000,000 151,200,000 43,200,000 86,400,000 MKD 307,800,000 MKD 37,800,000 108,000,000 60,000,000 102,000,000 Balance Sheet Before Devaluation Exchange Rate (MKD/USS) 49.00 (H) 50.00 (C) 48.00 (H) 50.00 (C) 45.00 (H) 50.00 (C) 40.00 (H) 50.00 (C) 48.50 (H) 50.00 (C) 47.50 (H) 50.00 (C) 31.25 (H) 50.00 (C) 37.50 (H) 50.00 (C) Translated. Accounts US Dollars S After Devaluation Exchange Rate (MKD/USS) 49.00 (H) 60.00 (C) 48.00 (H) 60.00 (C) 45.00 (H) 60.00 (C) 40.00 (H) 60.00 (C) 48.50 (H) 60.00 (C) 47.50 (H) 60.00 (C) 31.25 (H) 60.00 (C) 37.50 (H) 60.00 (C) Translated Accounts US Dollars S Total MKD 307,800,000 $ Percentage Change in the Value of Macedonian Denar Instead, the translation gain(loss) arising from the fall in the value of Macedonian Denar can be calculated as follows: Net Exposed Assets (US S) S Increase in Translation Gain (Loss) after Devaluation of the Macedonian Denar