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Using facts in the chapter for GanadoEurope, assume that the exchange rate on January2, 2016, in Exhibit 11.6 dropped in value from $1.1200/ to $0.8500/.

Using facts in the chapter for GanadoEurope, assume that the exchange rate on January2, 2016, in Exhibit 11.6 dropped in value from $1.1200/ to $0.8500/. Recalculate GanadoEurope's translated balance sheet for January2, 2016, with the new exchange rate using the temporal rate method as shown.

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a. What is the amount of translation gain orloss? (Round to nearest dollar)

b. Where should it appear in the financialstatements?

c. Why does the translation loss or gain under the temporal method differ from the loss or gain under the current ratemethod?

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