Question
The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).
The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).
Additional Information
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Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.
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Agee purchased buildings in 2011 and sold one building with a book value of Kr 7,100 on July 1 of the current year.
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Equipment was acquired on April 1, 2017.
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Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $105,350, which included a remeasurement loss of $12,750.
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Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $107,500, and a cumulative translation adjustment of $24,550 (credit balance).
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