In 1995, Ajax Manufacturing's German subsidiary has the following balance sheet:

Cash, marketable securities Accounts receivable Inventory (at market) Fixed Assets Total assets

DM 250,000 1,000,000 2,700,000 5,100,000 ----------------- DM 9,050,000

Current liabilities Long-term debt Equity Total liabilities plus equity

DM 750,000 3,400,000 4,900,000 --------------- DM 9,050,000

Suppose the DM appreciates from $0.70 to $0.76 during the period.

10.21 Under the current/noncurrent method, what is Ajax's translation gain (loss).?

a) a gain of $294,000

b) a gain of $192,000

c) a loss of $174,000

d) a loss of $12,000

Please show work. Correct answer is B.