Efren Ltd. is a foreign subsidiary of a Canadian parent and is located in the country of Matos. The SFP accounts of Efren are as follows, stated in mats (M):
Cash................................. M 20,000
Accounts receivable........................... 10,000 Inventory (at market)...................... 60,000
Capital assets......................... 200,000
Accumulated depreciation.................... (80,000)
Long-term note receivable.................... 50,000 Total assets................................ M260,000
Accounts and notes payable.................... M 40,000 Bonds payable.......................... 150,000 Common shares........................... 70,000
Total liabilities and equities.................... M260,000
Additional Information
1. Efren Ltd. is wholly owned by Hialea Corp. Hialea established Efren when the mat was worth $ 1.00.
2. The capital assets were purchased when the mat was worth $ 1.20.
3. The bonds payable were issued when the exchange rate for the mat was $ 1.15.
4. The long-term note receivable arose when the mat was worth $ 1.30.
5. The inventory was purchased when the mat was worth $ 1.40.
6. The current exchange rate for the mat is $ 1.50.

Required
1. Translate the SFP accounts of Efren Ltd. into Canadian dollars, using each of the following methods:
a) Current-rate
b) Temporal
In each case, treat the translation gain or loss as a single, balancing figure.
2. For each method, calculate the:
a) Accounting exposure
b) Additional gain or loss that would result if the exchange rate one year hence were $ 1.75, assuming no change in the SFP accounts in mats.