On January $1,2024,$ a U$.$S$.$ company purchased $100\%$ of the outstanding stock of Ventana Grains, a company located in Latz City, New Zealand. Ventana Grains was organized on January $1,2005.$ All the property, plant, and equipment held on January $1,2024,$ was acquired when the company was organized. The business combination was accounted for as a purchase transaction. The $2024$ financial statements for Ventana Grains, prepared in its local currency, the New Zealand dollar, are given here.

VENTANA GRAINS

Comparative Balance Sheets

January $1$ and December $31,2024$

Jan. $1$ Dec. $31$

Cash and Receivables $500,000880,000$

Inventories $600,000500,000$

Land $400,000400,000$

Buildings $($net$)650,000605,000$

Equipment $($net$)465,000470,000$

Totals $2,615,0002,855,000$

Short$-$Term Accounts and Notes $295,000210,000$

Long$-$Term Notes $(600,000$ issued

September $1,2016,80,000$ issued

July $1,2024)600,000680,000$

Common Stock $800,000800,000$

Additional Paid$-$in Capital $200,000200,000$

Retained Earnings $720,000965,000$

Total $2,615,0002,855,000$

VENTANA GRAINS

Consolidated Income and Retained Earnings Statement

for the Year Ended December $31,2024$

Revenues $3,225,000$

Cost of Goods Sold:

Beginning Inventory $600,000$

Purchases $2,100,000$

Goods Available for Sale $2,700,000$

Less: Ending Inventory $500,000$

Cost of Goods Sold $2,200,000$

Gross Profit on Sales $1,025,000$

Depreciation Expense $140,000$

Other Expenses $540,000680,000$

Net Income $345,000$

Jan. $1$ Retained Earnings $720,000$

Total $1,065,000$

Less: Dividends Paid $100,000$

Dec. $31$ Retained Earnings $965,000$

The account balances are computed in conformity with U$.$S$.$ generally accepted accounting standards.

Other information is as follows:

$1.$ Direct exchange rates for the New Zealand dollar on various dates were:

Date Exchange Rate

January $1,2005$ $$0\mathrm{.}8011$

September $1,20150\mathrm{.}5813$

January $1,20240\mathrm{.}7924$

July $1,20240\mathrm{.}7412$

December $31,20240\mathrm{.}7298$

Average for $20240\mathrm{.}7480$

Average for the last four months of $20240\mathrm{.}7476$

$2.$ Ventana Grains purchased additional equipment for $100,000$ New Zealand dollars on July $1,2024,$ by issuing a note for $80,000$ New Zealand dollars and paying the balance in cash.

$3.$ Sales were made and purchases and $$Other Expenses$$ were incurred evenly throughout the year.

$4.$ Depreciation for the period in New Zealand dollars was computed as follows:

Building $45,000$

Equipment$$Purchased before $1/1/202485,000$

Equipment$$Purchased July $1,202410,000$

$5.$ The inventory is valued on a FIFO basis. The beginning inventory was acquired when the exchange rate was $$0\mathrm{.}7480.$ The ending inventory was acquired during the last four months of $2024.$

$6.$ Dividends of $50,000$ New Zealand dollars were paid on July $1$ and December $31.$

Describe how the translation gain or loss would be reported in the financial statements.