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 $1.1700/8 to $0.9600/. Recalculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the temporal rate method as shown in the popup window a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? c. Why does the translation loss or gain under the temporal method differ from the loss or gain under the current rate method? a. What is the amount of translation gain or loss? Enter a positive numiler for a gain and negative for a loss (Round to the nearest dollar.) EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method December 31, 2015 January 2, 2016 Exchange Rate Translated Exchange Rate Translated Assets In Euros (0) (US$/euro) Accounts (US$) (US$/euro) Accounts (US$) Cash 1,000,000 1.1700 $1,170,000 0.9600 $960,000 Accounts receivable 2,900,000 1.1700 3,393,000 0.9600 2,784,000 Inventory 2,400,000 1.1890 2,853,600 1.1890 2,853,600 Net plant and equipment 4,900,000 1.2450 6,100,500 1.2450 6.100,500 Total 11.200,000 $13,517,100 $12,698,100 Liabilities and Net Worth Accounts payable 1,100,000 1.1700 $1,287,000 0.9600 $1,056,000 Short-term bank debt 1,700,000 1.1700 1,989.000 0.9600 1,632,000 Long-term debt 1,400,000 1.1700 1,638,000 0.9600 1,344,000 Common stock 2,500,000 1.2450 3,112,500 1.2450 3,112,500 Retained earnings 4,500,000 1.2182 (a) 5,490,600 1.2182 (6) 5,490,600 Translation gain (loss) (c) ? Total 11,200,000 $13,517,100 $12,698, 100 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings 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. Irlader the lamporal method the translation loc would be closed into retained earninne through the income statement rather