PROBLEM 3 Exhibit 1 presents the balance sheet for December 31, 2018 of a Swiss subsidiary, which keeps its books in Swiss francs. However, they should be translated into U.S. dollars, the reporting currency of the MNC. Exhibit 1: Liabilities & Net Worth Assets Cash SF2,100,000 Accounts payable SF800,000 1,500,000 Notes payable 2,200,000 Accounts receivable Inventory 3,000,000 Common stock 2,700,000 Retained earnings 900,000 Total 6,600,000 Total 6,600,000 Assume that the Swiss Franc dropped in value from $1.10/SF to $1.00/SF between December 31 and January 1, 2019. All inventory and common stock were acquired from the exchange rate of $0.90/SF. If there is no change in balance sheet accounts between these two days, calculate the gain or loss from translation by temporal rate method