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The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amounts are denominated in kroner
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 January 1, 2020 (21,000) December 31, 2020 (28,000) Accounts receivable 48,000 Accumulated depreciation-buildings (39,000) 98,000 (44,000) Accumulated depreciation-equipment Bonds payable-due 2023 (58,000) (6,900) (58,000) Buildings 128,000 102,000 Cash 54,000 9,900 Common stock (63,000) (73,000) Depreciation expense 34,000 Dividends (10/1/20) 51,000 Equipment 49,000 Gain on sale of building (7,900) Rent expense Retained earnings (49,000) Salary expense Sales Utilities expense 18,900 (49,000). 39,000 (144,000) 9,000 Additional Information 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 3,900 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, 2020 $ 2.60 2.40 2.70 April 1, 2020 2.80 July 1, 2020 3.00 October 1, 2020 3.10 December 31, 2020 3.20 Average for 2020 2.98 a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $111,900, which included a remeasurement loss of $13,150. b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $120,000 and a cumulative translation adjustment of $18,600 (credit balance).
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