Using facts in the chapter for Ganado Europe, assume the exchange rate on January 2, 2006, in Exhibit 11.4 appreciated from $1.2000/ to $1.500/. Calculate Ganado Europe's translated balance sheet for January 2, 2006 with the new exchange rate using the current rate method.
	a. What is the amount of translation gain or loss?
	b. Where should it appear in the financial statements?
	Translation Using the Current Rate Method: euro appreciates from $1.2000/euro to $1.5000/euro.
					Just before revaluation				Just after revaluation
							Translated				Translated
			Euros		Exchange Rate		Accounts		Exchange Rate		Accounts
	Assets		Statement		(US$/euro)		US dollars		(US$/euro)		US dollars
	Cash		1,600,000		1.2000		$ 1,920,000
	Accounts receivable		3,200,000		1.2000		3,840,000
	Inventory		2,400,000		1.2000		2,880,000
	Net plant & equipment		4,800,000		1.2000		5,760,000
	Total		12,000,000				$ 14,400,000
	Liabilities & Net Worth
	Accounts payable		800,000		1.2000		$ 960,000
	Short-term bank debt		1,600,000		1.2000		1,920,000
	Long-term debt		1,600,000		1.2000		1,920,000
	Common stock		1,800,000		1.2760		2,296,800
	Retained earnings		6,200,000		1.2000		7,440,000
	CTA account (loss)		-				$ (136,800)
	Total		12,000,000				$ 14,400,000