Ganado Europe (B). Using facts in the chapter for Ganado Europe, assume that the exchange rate on January 2, 2016, in Exhibit 11.6 dropped in value from $1.2600/ to $0.9200/. Recalculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the temporal rate method as shown in the popup window. I a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? c. Why does the translation loss or gain under the temporal method differ from the loss or gain under the current rate method? Assets Cash Accounts receivable Inventory Net plant and equipment Total In Euros () 2,000,000 3,300,000 2,200,000 5,400,000 12,900,000 December 31, 2015 Exchange Rate Translated (US$/euro) Accounts (US) 1.2600 $2,520,000 1.2600 4,158,000 1.2810 2,818,200 1.3360 7,214,400 $16,710,600 January 2, 2016 Exchange Rate Translated (US$/euro) Accounts (USS) 0.9200 $1,840,000 0.9200 3,036,000 1.2810 2,818,200 1.3360 7,214,400 $14,908,600 Accounts payable Short-term bank debt Long-term debt Common stock Retained earnings Translation gain (loss) Total 900,000 1,500,000 1,800,000 1,900,000 6,800,000 1.2600 1.2600 1.2600 . 1.3360 1.3017 (a) $1,134,000 1,890,000 2,268,000 2,538,400 8,880,200 0.9200 0.9200 0.9200 1.3360 1.3017 (b) (c) $828,000 1,380,000 1,656,000 2,538,400 8,880,200 ? $14,908,600 12,900,000 $16,710,600