E 14-7 Acquisition—excess allocation On January 1, 2016, Minang Sdn. Bhd. of Malaysia acquired a 90 percent interest in Urden AG of Germany for 180 million Malaysian ringgits (MYR). The book value of Uden’s net assets was equal to fair value on this date, except for undervalued equipment of €500,000 with a five-year remaining useful life and undervalued land of

€1,000,000 German marks. Urden’s equity at that date consisted of €50 million of common stock and €20 million of retained earnings.

The functional currency of Urden AG is the euro. The exchange rates for 2016 are as follows:

Spot rate January 1, 2016 0.40 MYR Average rate 2016 0.39 MYR Current rate December 31, 2016 0.42 MYR REQuIRED: Determine the unrealized translation gain or loss at December 31, 2016, relating to the excess transaction.