Ajax Manufacturing's German subsidiary has the following balance sheet:

Non-current assets Accounts receivable Inventory (at market) Cash, marketable securities Total assets

5,100,000 2,700,000 1,000,000 250,000 ----------------- 9,050,000

Equity Non-current liabilities Current liabilities Total equity And liabilities

4,900,000 3,400,000 750,000 --------------- 9,050,000

Suppose the euro appreciates from $0.70 to $0.76 during the period?

10.24 Under the monetary/non-monetary method, what is Ajax's translation gain (loss)?

a) a gain of $294,000

b) a gain of $192,000

c) a loss of $174,000 <- answer

d) a loss of $12,000

show how to work (=process of calculation)