Ganado Europe (A). Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2006, in Exhibit 11.4 dropped in value from $1.2000/€

to $0.9000/€ (rather than to $1.0000/€). Recalculate Ganado Europe’s translated balance sheet for January 2, 2006, with the new exchange rate using the current rate method.

a. What is the amount of translation gain or loss?

b. Where should it appear in the financial statements?