15. Translation temporal Please refer to Table 4 in the datafile. If EuroTrade applies the temporal method of translation, what will be the effect of an increase in the EUR/USD exchange rate? (Note: gain equity increases; loss equity decreases) = a) translation loss Ob) translation gain c) impossible to determine O d) no effect EuroTrade Americas is a US subsidiary of a Dutch company. The subsidiary uses USD as functional currency and its balance sheet has to be translated into EUR every quarter. USD Assets Cash Accounts receivable Inventory Net plant & equipment Total 3 000 000 2 000 000 1 600 000 2 400 000 9 000 000 Liabilities Accounts payable Short-term bank debt Long-term debt Common stock Total 900 000 1 800 000 2 300 000 4 000 000 9 000 000