CMT Ltd is the Taiwan subsidiary of a U.S. auto parts manufacturer. CMT’s balance sheet in thousands of Taiwan Dollar (T

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CMT Ltd is the Taiwan subsidiary of a U.S. auto parts
manufacturer. CMT’s balance
sheet in thousands of Taiwan Dollar (TWD) as of June 30 as
follows:
Balance Sheet, June 30, thousands of TWD
Assets
Cash TWD 60,000
Accounts receivable 80,000
Inventory 45,000
Net plant & equipment 58,000
TWD 243,000
Liabilities & Net Worth
Accounts payable TWD 72,000
Long-term debt 84,000
Common stock 47,000
Retained earnings 40,000
TWD 243,000
Exchange rates for translating CMT’s balance sheet into U.S.
dollars are:
June 30: $0.034/TWD (exchange rate before 20% appreciation)
Dec. 31: $0.0408/TWD (exchange rate after 20% appreciation)
The TWD increased in value from $0.034/TWD to $0.0408/TWD between
June 30 and
Dec. 31. Assuming no change in balance sheet accounts between these
two days,
calculate the gain or loss from translation by both the current
rate method and the
temporal method. (8 points)
Please show your work.