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Book 6 Exam 2 PM Quest. #101

How do they calculate the $109 FC translation adjustment? Do you have to convert the entire B/S? I know that exposure under the all current method is equity. I thought you would need to calculate the change in exposure (equity) by the historical rate? Help on this would be appreciated. thx

Assets: 1700
Liabs: 300
Equity: 1400 * .85 = 1190
Existing CS: 1300 * 77 = 1001
Diff: 189
Net Income = 100 * .8 (Avg) = 80
So CTA: 189 - 80 = 109

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