111 Homework: Chapter 11 Homework a. What is the amount of translation gain or loss? b. Where should it appear in the fi

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111 Homework Chapter 11 Homework A What Is The Amount Of Translation Gain Or Loss B Where Should It Appear In The Fi 1 (46.9 KiB) Viewed 54 times

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111 Homework: Chapter 11 Homework a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? Question 4, Problem 11-4 (book/static) Part 1 of 2 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 $1.2000/€ to $1.5000/€. Calculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the temporal rate method as shown in the popup window, a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. (Round to the nearest dollar) View an example Etext pages HW Score: 0%, 0 of 10 points O Points: 0 of 1 Financial calculator Save Clear all Check answer In
Data table EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method December 31, 2015 Assets Cash Accounts receivable Inventory Net plant and equipment Total Liabilities and Net Worth Accounts payable Short-term bank debt In Euros (6) 1,600,000 3,200,000 2,400,000 4,800,000 12,000,000 View on campic Quaetion 4 Drohlam 11.4 800,000 1,600,000 1,600,000 1,800,000 6,200,000 LICAL pages Exchange Rate (US$/euro) 1.2000 1.2000 1.2180 1.2760 1.2000 1.2000 1.2000 1.2760 1.2437 (a) Translated Accounts (US$) Print Tienciar CuivuIGLOT $1,920,000 3,840,000 2,923,200 6,124,800 $14,808,000 $960,000 1,920,000 1,920,000 2,296,800 7,711,200 January 2, 2016 Exchange Rate (US$/euro) 1.5000 1.5000 1.2180 1.2760 Done 1.5000 1.5000 1.5000 1.2760 1.2437 (b) (c) Long-term debt. Common stock Retained earnings Translation gain (loss) Total 12,000,000 $14,808,000 $16,248,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the euro. (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Translated Accounts (US$) $2,400,000 4,800,000 Clear an 2,923,200 6,124,800 $16,248,000 $1,200,000 2,400,000 2,400,000 2,296,800 7,711,200 ? 0 - X nanof