Ganado Europe (A). Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2016, in Exhibit 11.5 dropped in value from $1.1200/ to $0.9300/. Recalculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the current rate method as shown in the popup window, a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? Assets Cash Accounts receivable Inventory Net plant and equipment Total Llabilities and Net Worth In Euros () 1,500,000 3,400,000 2,300,000 4,700,000 11,900,000 Exchange Rate (US$leuro) 1.1200 1.1200 1.1200 1.1200 Translated Accounts (US$) $1,680,000 3,808,000 2,576,000 5,264,000 $13,328,000 Exchange Rate (US$/euro) 0.9300 0.9300 0.9300 0.9300 Translated Accounts (US$) $1,395,000 3,162,000 2,139,000 4,371,000 $11,067,000 Liabilities and Net Worth Accounts payable Short-term bank debt Long-term debt Common stock Retained earnings Translation adjustment (CTA) Total 1,100,000 1,000,000 1,700,000 1,600,000 6,500,000 1.1200 1.1200 1.1200 1.1780 1.1200 (a) $1,232,000 1,120,000 1,904,000 1,884,800 7.280,000 (92,800) $13,328,000 0.9300 0.9300 0.9300 1.1780 1.1200 (6) $1,023,000 930,000 1,581,000 1,884,800 7,280,000 (1,631,800) $11,067,000 11,900,000