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) January 1, 2017 December 31, 2017 Accounts payable (20,000 ) (25,500 ) Accounts receivable 49,000 99,000 Accumulated depreciationbuildings (40,000 ) (45,000 ) Accumulated depreciationequipment 0 (7,000 ) Bonds payabledue 2020 (59,000 ) (59,000 ) Buildings 129,000 102,500 Cash 55,000 10,000 Common stock (64,000 ) (75,000 ) Depreciation expense 0 35,000 Dividends (10 1 17) 0 52,000 Equipment 0 50,000 Gain on sale of building 0 (8,000 ) Rent expense 0 19,500 Retained earnings (50,000 ) (50,000 ) Salary expense 0 40,000 Sales 0 (148,000 ) Utilities expense 0 9,500 Additional Information 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 Agee purchased buildings in 2011 and sold one building with a book value of Kr 3,500 on July 1 of the current year Equipment was acquired on April 1, 2017 Relevant exchange rates for 1 Kr were as follows 2010 $ 2 65 2011 2 45 January 1, 2017 2 75 April 1, 2017 2 85 July 1, 2017 3 05 October 1, 2017 3 15 December 31, 2017 3 25 Average for 2017 2 95 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 $117,200, which included a remeasurement loss of $13,200 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 $122,500, and a cumulative translation adjustment of $21,400 (credit balance)

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Posted on Sep 17, 2024

	January 1, 2017			December 31, 2017
Accounts payable		(20,000	)		(25,500	)
Accounts receivable		49,000			99,000
Accumulated depreciationbuildings		(40,000	)		(45,000	)
Accumulated depreciationequipment		0			(7,000	)
Bonds payabledue 2020		(59,000	)		(59,000	)
Buildings		129,000			102,500
Cash		55,000			10,000
Common stock		(64,000	)		(75,000	)
Depreciation expense		0			35,000
Dividends (10/1/17)		0			52,000
Equipment		0			50,000
Gain on sale of building		0			(8,000	)
Rent expense		0			19,500
Retained earnings		(50,000	)		(50,000	)
Salary expense		0			40,000
Sales		0			(148,000	)
Utilities expense		0			9,500

Additional Information

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.
Agee purchased buildings in 2011 and sold one building with a book value of Kr 3,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

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 $117,200, which included a remeasurement loss of $13,200.
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 $122,500, and a cumulative translation adjustment of $21,400 (credit balance).