Problem 10-34

Problem 10-34 (Algo) (LO 10-3, 10-4) The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amounts are denominated in kroner (Kr). Accounts payable Accounts receivable Accumulated depreciation buildings Accumulated depreciation equipment Bonds payable due 2023 Buildings Cash Common stock Depreciation expense Dividends (10/1/20) Equipment Gain on sale of building Rent expense Retained carnings Salary expense Sales Utilities expense January 1, 2020 (9,020) 34, are (25.000 (55,000) 114,000 40.000 (64.ee) e December 31, 2828 (19,000) 84.ee (30.ee) (5.58) (55,000) 95,000 8.50 (78,000) 20.000 37.000 35.ee (6.500 17.ee (35,00) 25. aee (100,eee) 7.500 e e (35,000) e e e Additional Information o Agee issued additional shares of common stock during the year on April 1, 2020. Common stock at January 1, 2020, was sold at the start of operations in 2013 Agee purchased buildings in 2014 and sold one building with a book value of Kr 9,500 on July 1 of the current year. Equipment was acquired on April 1, 2020. Relevant exchange rates for 1 kr were as follows: 2013 2014 January 1, 2eze April 1, 2eze July 1, 2020 October 1, 2e2e December 31, 2020 Average for 2020 $ 2.65 2.45 2.75 2.85 3.es 3.15 3.25 2.95 a. Assuming the U.S. doller is the functional currency. What is the remessurement gain or loss for 2020? The December 31, 2019. U.S. dollar-translated balance sheet reported retained earnings of $75,950, which included a remessurement loss of $12.450. b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December 31, 2019. U.S. doller-translated balance sheet reported retained earnings of $92,500 and a cumulative translation adjustment of $10,150 (credit balance) (For all requirements. Input all answers as positive.) gain Remeasurement Translation adjustment b. positive