Ganado Europo (C). Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2016, in Exhibit 11.5 appreciated from $1,3000/ to $1.6400/. Calculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the current rate method as shown in the popup window, a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements ? Assets Cash Accounts receivable Inventory Net plant and equipment Total In Euros () 1,900,000 3,300,000 2,900,000 5,500,000 13,600,000 December 31, 2015 Exchange Rate Translated (US$/euro) Accounts (US$) 1.3000 $2,470,000 1.3000 4,290,000 1.3000 3,770,000 1.3000 7,150,000 $17,680,000 January 2, 2016 Exchange Rate Translated (US$/euro) Accounts (US$) 1.6400 $3,116,000 1.6400 5,412,000 1.6400 4,756,000 1.6400 9,020,000 $22,304,000 ARMA Accounts payable Short-term bank debt Long-term debt Common stock Retained earnings Translation adjustment (CTA) Total 1,300,000 1,200,000 1,600,000 1,500,000 8,000,000 1.3000 1.3000 1.3000 1.3510 1,3000 (a) $1,690,000 1,560,000 2,080,000 2,026,500 10,400,000 (76,500) $17,680,000 1.6400 1.6400 1.6400 1.3510 1.3000 (b) $2,132,000 1.968,000 2,624,000 2,026,500 10,400,000 3,153,500 $22,304,000 13,600,000