Trident Europe (A). Using facts in the chapter for Tri- dent Europe, assume the exchange rate on January 2, 2006, in Exhibit 10.4 dropped in value from $1.2000/ to $0.9000/ (rather than to $1.0000/). Recalcu- late Trident Europes translated balance sheet for January 2, 2006, with the new exchange rate using the current rate method.

What is the amount of translation gain or loss?

Where should it appear in the financial

statements?