Ganado Europe (D). Using facts in the chapter for Ganado Europe, assume that the exchange rate on January 2, 2016, in Exhibit 11.6 appreciated from $1.1800/ to $1.6100/. Calculate 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, 23 a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. $ (Round to the nearest dollar.) b. Where should it appear in the financial statements? (Select the best choice below.) O A. The translation gain (loss) for the year is added to the balance in the Total Assets account. OB. The translation gain (loss) for the year is added to the balance in the Cumulative Translation Adjustment (CTA) account. OC. The translation gain (loss) for the year is added to the balance in the Retained Earnings account. O D. The translation gain (loss) for the year is added to the balance in the Total Liabilities and Net Worth account. A Data Table - Ganado Europe (D). Using facts in the chapter 2, 2016, with the new exchange rate using the te X Europe's translated balance sheet for Janua a. What is the amount of translation gain or loss? b. Where should it appear in the financial statem EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method a. What is the amount of translation gain or loss? $ (Round to the nearest dollar.) b. Where should it appear in the financial statem O A. The translation gain (loss) for the year is O B. The translation gain (loss) for the year is O C. The translation gain (loss) for the year is OD. The translation gain (loss) for the year is December 31, 2015 January 2, 2016 Exchange Rate Translated Exchange Rate Translated Assets In Euros () (US$/euro) Accounts (US$) (US$/euro) Accounts (US$) Cash 1,100,000 1.1800 $1,298,000 1.6100 $1,771,000 Accounts receivable 3,300,000 1.1800 3,894,000 1.6100 5,313,000 Inventory 2,600,000 1.1980 3,114,800 1.1980 3,114,800 Net plant and equipment 4,700,000 1.2550 5,898,500 1.2550 5,898,500 Total 11,700,000 $14,205,300 $16,097,300 Liabilities and Net Worth Accounts payable 1,100,000 1.1800 $1,298,000 1.6100 $1,771,000 Short-term bank debt 1,700,000 1.1800 2,006,000 1.6100 2,737,000 Long-term debt 2,000,000 1.1800 2,360,000 1.6100 3,220,000 Common stock 2,400,000 1.2550 3,012,000 1.2550 3,012,000 Retained earnings 4,500,000 1.2233 (a) 5,529,300 1.2233 (b) 5,529,300 Translation gain (loss) (C) Total 11,700,000 $14,205,300 $16,097,300 (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. (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Print [ Done] Print Done Click to select your answer(s). Ganado Europe (D). Using facts in the chapter for Ganado Europe, assume that the exchange rate on January 2, 2016, in Exhibit 11.6 appreciated from $1.1800/ to $1.6100/. Calculate 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, 23 a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. $ (Round to the nearest dollar.) b. Where should it appear in the financial statements? (Select the best choice below.) O A. The translation gain (loss) for the year is added to the balance in the Total Assets account. OB. The translation gain (loss) for the year is added to the balance in the Cumulative Translation Adjustment (CTA) account. OC. The translation gain (loss) for the year is added to the balance in the Retained Earnings account. O D. The translation gain (loss) for the year is added to the balance in the Total Liabilities and Net Worth account. A Data Table - Ganado Europe (D). Using facts in the chapter 2, 2016, with the new exchange rate using the te X Europe's translated balance sheet for Janua a. What is the amount of translation gain or loss? b. Where should it appear in the financial statem EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method a. What is the amount of translation gain or loss? $ (Round to the nearest dollar.) b. Where should it appear in the financial statem O A. The translation gain (loss) for the year is O B. The translation gain (loss) for the year is O C. The translation gain (loss) for the year is OD. The translation gain (loss) for the year is December 31, 2015 January 2, 2016 Exchange Rate Translated Exchange Rate Translated Assets In Euros () (US$/euro) Accounts (US$) (US$/euro) Accounts (US$) Cash 1,100,000 1.1800 $1,298,000 1.6100 $1,771,000 Accounts receivable 3,300,000 1.1800 3,894,000 1.6100 5,313,000 Inventory 2,600,000 1.1980 3,114,800 1.1980 3,114,800 Net plant and equipment 4,700,000 1.2550 5,898,500 1.2550 5,898,500 Total 11,700,000 $14,205,300 $16,097,300 Liabilities and Net Worth Accounts payable 1,100,000 1.1800 $1,298,000 1.6100 $1,771,000 Short-term bank debt 1,700,000 1.1800 2,006,000 1.6100 2,737,000 Long-term debt 2,000,000 1.1800 2,360,000 1.6100 3,220,000 Common stock 2,400,000 1.2550 3,012,000 1.2550 3,012,000 Retained earnings 4,500,000 1.2233 (a) 5,529,300 1.2233 (b) 5,529,300 Translation gain (loss) (C) Total 11,700,000 $14,205,300 $16,097,300 (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. (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Print [ Done] Print Done Click to select your answer(s)