Homework: Chapter 11 Homework Question 2, Problem 11-2 (algorithmic) Part 1 of 3 HW Score: 0%, 0 of 10 points O Points:

[answerhappygod]

Homework Chapter 11 Homework Question 2 Problem 11 2 Algorithmic Part 1 Of 3 Hw Score 0 0 Of 10 Points O Points 1 (51.49 KiB) Viewed 43 times

Homework Chapter 11 Homework Question 2 Problem 11 2 Algorithmic Part 1 Of 3 Hw Score 0 0 Of 10 Points O Points 2 (83.14 KiB) Viewed 43 times

Homework: Chapter 11 Homework Question 2, Problem 11-2 (algorithmic) Part 1 of 3 HW Score: 0%, 0 of 10 points O Points: 0 of 1 Ganado Europe (B). Using facts in the chapter for Ganado Europe, assume that the exchange rate on January 2, 2016, in Exhibit 11.6 dropped in value from $1.2800/€ to $0.8900/€. Recalculate Ganado Europe's translated balance sheet for January 2, 2016, with the new exchange rate using the temporal rate method as shown in the popup window, a. What is the amount of translation gain or loss? b. Where should it appear in the financial statements? c. Why does the translation loss or gain under the temporal method differ from the loss or gain under the current rate method? a. What is the amount of translation gain or loss? Enter a positive number for a gain and negative for a loss. (Round to the nearest dollar.) Help me solve this View an example Get more help. Save Clear all Check answer
Data table EXHIBIT 11.6 Ganado Europe's Translation Loss After Depreciation of the Euro: Temporal Method December 31, 2015 Assets Cash Accounts receivable Inventory Net plant and equipment Total Liabilities and Net Worth Accounts payable Short-term bank debt Long-term debt Common stock Retained earnings Translation gain (loss) Sip me suive uns In Euros (€) 1,600,000 3,300,000 2,900,000 5,500,000 13,300,000 Question 2 Drohlam 11-2 1,000,000 1,500,000 1,800,000 VIUW DIE CADIPIC 2,200,000 6,800,000 Exchange Rate (US$/euro) 1.2800 1.2800 1.2950 1.3550 1.2800 1.2800 1.2800 1.3550 1.3237 (a) Print Translated Accounts (USS) Get more reip $2,048,000 4,224,000 3,755,500 7,452,500 $17,480,000 $1,280,000 1,920,000 2,304,000 2,981,000 8,995,000 January 2, 2016 Done Exchange Rate (US$/euro) 0.8900 0.8900 1.2950 1.3550 0.8900 0.8900 0.8900 1.3550 1.3237 (b) Total 13,300,000 $17,480,000 $15,569,000 (a) Dollar retained earnings before depreciation are the cumulative sum of additions to retained earnings of all prior years, translated to exchange rates in each year. (b) Translated into dollars at the same rate as before depreciation of the euro. (c) Under the temporal method, the translation loss would be closed into retained earnings through the income statement rather than left as a separate line item as shown here. Translated Accounts (US$) Viear an $1,424,000 2,937,000 3,755,500 7,452,500 $15,569,000 $890,000 1,335,000 1,602,000 2,981,000 8,995,000