Ganado Europe (C). Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2016 in Exhibit 115 appreciated from 51 2500/to $1.4700/. Calculate 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, 9/20 Opm a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? 0/20 9pm a. What is the amount of translation gain or loss? Enter a positive number for again and negative for a loss SU (Round to the nearest dollar) b. Where should it appear in the financial statements? (Select the best choice below) 10/20 59pm O /10/20 :59pm O A. The translation gain (los) for the year is added to the balance in the Retained Earnings account B. The translation gain (loss) for the year is added to the balance in the Total Liabilities and Net Worth account OC. The translation gain (loss) for the year is added to the balance in the Total Assets account OD. The translation gain (loss) for the year is added to the balance in the Cumulative Translation Adjustment (CTA) account 5/10/20 1:59pm 90g 2700 up i Data Table - X p/e to the What Wher EXHIBIT 11.5 Ganado Europe's Translation Loss After Depreciation of the Euro: Current Rate Method . What b. Wher . OB OC. OD December 31, 2015 January 2, 2016 Exchange Rate Translated Assets Exchange Rate In Euros (9) Translated (USS/euro) Accounts (USS) (USS/euro) Accounts (USS) Cash 1,300,000 1.2500 $1,625,000 1.4700 $1,911,000 Accounts receivable 3,400,000 1.2500 4,250,000 14700 Inventory 4,998,000 2,300,000 1.2500 2,875,000 1.4700 3,381,000 Net plant and equipment 4,800,000 1.2500 6,000,000 1.4700 7,056,000 Total 11,800,000 $14,750,000 Liabilities and Net Worth $17,346,000 Accounts payable 1,400,000 1.2500 $1,750,000 1.4700 $2,058,000 Short-term bank debt 1,600,000 1.2500 2,000,000 1.4700 2,352,000 Long-term debt 1,400,000 1.2500 1,750,000 1.4700 2,058,000 Common stock 2,200,000 1.3160 2,895,200 1.3160 2,895 200 Retained earnings 5,200,000 1.2500 (a) 6,500,000 12500 (b) 6,500,000 Translation adjustment (CTA) (145,200) 1,482,800 Total 11,800,000 $14,750,000 $17,346,000 (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 Click on the icon located on the top-night comer of the data fable in order to copy its contents into a spreadsheet Print Done Click to
