(Solution) - Ajax Manufacturing s German subsidiary has the following balance -(2025 Original AI-Free Solution)

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Ajax Manufacturing's German subsidiary has the following balance sheet(in DM):
Cash, marketable securities: ......250,000
Accounts receivable .........1,000,000
Inventory ( at market) ......2,700,000
Fixed assets: ............5,100,000
Total assets DM .........9,050,000
Current liabilities DM .........750,000
Long-term debt ..........3,400,000
Equity ............4,900,000
Total liabilities plus equity: DM ..9,050,000.
Suppose the DM appreciates from $0.70 to $0.76 during the period.
Under the current/noncurrent method what is Ajax's translation gain (loss)?
Under the temporal method, what is Ajax's translation gain (loss)?