For #22, the translation gain on Kerwin's identifiable assets resulting from exchange rate changes, why flow effect is also included? I thought it should be holding effect only.

Thanks.

21题我同意你，也还没弄明白，感觉是错题。

22题题目是对的，HOLDING EFFECT和FLOW EFFECT都是因为EXCHANGE RATE CHANGE产生的，没问题。

but for #23, the effect of exchange rate changes on net sales includes only holding effects.

Does that mean that the effect of exchange rate changes on income statement items are different from that on balance sheet item?

Thank you.

For #21, because $41 is negative in the financial statements so it is loss instead of gain. That's why

86+147-(41).