Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2016, in Exhibit 11.5 appreciated from $/ to $/. 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, (look at chart below)

a. What is the amount of translation gain or loss?

b. Where should it appear in the financial statements?

Cash	1500000	1.21	1815000	1.49	2235000
Accounts receivable	2900000	1.21	3509000	1.49	4321000
Inventory	2700000	1.21	3267000	1.49	4023000
Net plant and equipment	5400000	1.21	6534000	1.49	8046000
Total	12500000		15125000		18625000
Liabilities and Net Worth
Accounts payable	900000	1.21	1089000	1.49	1341000
Short-term bank debt	1700000	1.21	2057000	1.49	2533000
Long-term debt	1800000	1.21	2178000	1.49	2682000
Common stock	2500000	1.288	3220000	1.288	3220000
Retained earnings	5600000	1.21	6776000	1.21	6776000
Translation adjustment (CTA)	—		-195000		2073000
Total	12500000		15125000		18625000