READ VALUES CAREFULLY
	Using facts in the chapter for Ganado Europe, assume as in question Ganado Europe (A) that the exchange rate on January 2, 2006, in Exhibit 11.4 dropped in value from $1.2000/ to $0.9000/ (rather than to $1.0000/). Recalculate Ganado Europes translated balance sheet for January 2, 2006 with the new exchange rate using the temporal rate method.
	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?
	Translation Using the Temporal Method: euro depreciates from $1.2000/euro to $0.9000/euro.
					Just before devaluation				Just after devaluation
							Translated				Translated
			Euros		Exchange Rate		Accounts		Exchange Rate		Accounts
	Assets		Statement		(US$/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		1.2180		2,923,200
	Net plant & equipment		4,800,000		1.2760		$ 6,124,800
	Total		12,000,000				14,808,000
	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		1.243742		$ 7,711,200
	CTA account (loss)		-				$ (0)
	Total		12,000,000				$ 14,808,000