a & b

Ganado Europe (D). Using facts in the chapter for Ganado Europe, assume that the exchange rate on January 2, 2016, in Exhibit 11.6 appreciated from \$1.1000/E to \$1.5200/E. Calculate Ganado Europe's translated balance sheet for January 2,2016 , with the new exchange rate using the temporal rate method as shown in the popup window, a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. \$ (Round to the nearest dollar.) Data table EXFIBIT 17.6 Ganado turope's Iranslation Loss Atter Vepreciation of the turo: remporal Method (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained eamings of all prior years. translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the euro. (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather than left as a separate line item as shown here