Bethel Company has a foreign wholly owned subsidiary, Home Brite Company. The parent uses the current rate

Question:

Bethel Company has a foreign wholly owned subsidiary, Home Brite Company. The parent uses the current rate method to compute the cumulative translation adjustment.

Required:
Explain how the use of the current rate method affects each of the following:
a. Reported sales and income of Home Brite.
b. Computation of translation gains and losses.
c. Reporting of translation gains and losses.