4. Trident Europe (D). Using facts in the chapter for Trident Europe, assume as in Trident Europe (C) that the exchange rate on January 2, 2006, in Exhibit 11.4 appreciated from $1.2000/ to $1.5000/. Calculate Trident Europe's translated balance sheet for January 2, 2006, with the new exchange rate using the temporal method.

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

b. Where should it appear in the financial state- ments?