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 $1.2300/ to $1.5200/. 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,

a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. $nothing(Round to the nearest dollar.)

b. Where should it appear in the financial statements?(Select the best choice below.)

A. The translation gain (loss) for the year is added to the balance in the Total Assets account.

EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method
					December 31, 2015						January 2, 2016
Assets		In Euros ()			Exchange Rate (US$/euro)			Translated Accounts (US$)			Exchange Rate (US$/euro)			Translated Accounts (US$)
Cash		1,500,000			1.2300			$1,845,000			1.5200			$2,280,000
Accounts receivable		2,800,000			1.2300			3,444,000			1.5200			4,256,000
Inventory		2,400,000			1.2520			3,004,800			1.2520			3,004,800
Net plant and equipment		5,500,000			1.3070			7,188,500			1.3070			7,188,500
Total		12,200,000						$15,482,300						$16,729,300
Liabilities and Net Worth
Accounts payable		1,400,000			1.2300			$1,722,000			1.5200			$2,128,000
Short-term bank debt		1,800,000			1.2300			2,214,000			1.5200			2,736,000
Long-term debt		2,000,000			1.2300			2,460,000			1.5200			3,040,000
Common stock		1,500,000			1.3070			1,960,500			1.3070			1,960,500
Retained earnings		5,500,000			1.2731	(a)		7,125,800			1.2731	(b)		7,125,800
Translation gain (loss)												(c)		?
Total		12,200,000						$15,482,300						$16,729,300

B. The translation gain (loss) for the year is added to the balance in the Total Liabilities and Net Worth account.

C. The translation gain (loss) for the year is added to the balance in the Cumulative Translation Adjustment (CTA) account.

D.The translation gain (loss) for the year is added to the balance in the Retained Earnings account.