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TS 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

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TS 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 $1.1800/ to $1.4800/. 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, PER a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. $ (Round to the nearest dollar.) b. Where should it appear in the financial statements? (Select the best choice below.) O A. The translation gain (loss) for the year is added to the balance in the Cumulative Translation Adjustment (CTA) account OB. The translation gain (loss) for the year is added to the balance in the Total Liabilities and Net Worth account OC. The translation gain (loss) for the year is added to the balance in the Total Assets account OD. The translation gain (loss) for the year is added to the balance in the Retained Earnings account 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 $1.1800/8 to $1.4800/. Calculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchan rate using the temporal rate method as shown in the popup window Data Table EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method December 31, 2015 January 2, 2016 Exchange Rate Translated Exchange Rate Translated Assets In Euros (0) (USS/euro) Accounts (US$) (US$/euro) Accounts (USS) Cash 2.000.000 1.1800 $2.360.000 1.4800 $2.960,000 Accounts receivable 2,900,000 1.1800 3.422.000 1.4800 4.292.000 Inventory 2.600.000 1.2050 3.133.000 12050 3.133.000 Net plant and equipment 5,500,000 12560 6,908,000 1.2560 6,908,000 Tots 13,000,000 $15,823,000 $17.293,000 Liabilities and Net Worth Accounts payable 1,500,000 1.1800 $1.770.000 1.4800 $2,220,000 Short term bank debt 1,600,000 1.1800 1.888.000 1.4800 2.368,000 Long term debt 1,500,000 1.1800 1.770,000 1.4800 2.220.000 Common stock 2.500.000 12560 3.140,000 12500 3.140,000 Retained eaming 5.900.000 1.2256 ) 7.255.000 12256 (b) 7.255.000 Translation gain (los) 13,000,000 $15,823,000 $17.293.000 (a) Dollar retained earings before depreciation are the cumulative sum of addition to retained earnings of all prior years translated to exchange rates in each year (b) Translated into dollars at the same rate as before depreciation of the euro (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather than leas a separate line item as shown here. Chokorcon located on the comer of the data in order to contents Total

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