Using the information provided in Exercise 2. Calculate Majikstan Enterprises net monetary gain or loss in local currency for 2011 based on the following general price-level information.

12/31/10 - 30,000

Average - 32,900

12/31/11 - 36,000

Exercise 2 is below

The comparative historical-cost balance sheets of Majikstan Enterprises for 2010 and 2011 are reproduced below. The accounts are expressed in 000s of renges (MJRs).)

Balance Sheet - 2010 - 2011

Cash - MJR 2,500 - MJR 5,100

Equipment, net - 4,000 - 3,500

Total assets - MJR 6,500 - MJR 8,600

Current liabilities - MJR 1,000 - MJR 1,200

Long-term debt - 3,000 - 4,000

Owners equity - 2,500 - 3,400

Total - MJR 6,500 - MJR 8,600