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).

January 1, 2020December 31, 2020

Accounts payable (10,000) (19,000)

Accounts receivable 44,000 94,000

Accumulated depreciationbuildings (35,000) (40,000)

Accumulated depreciationequipment 0 (6,500)

Bonds payabledue 2023 (54,000) (54,000)

Buildings 124,000 100,000

Cash 50,000 9,500

Common stock (74,000) (84,000)

Depreciation expense 0 30,000

Dividends (10/1/20) 0 47,000

Equipment 0 45,000

Gain on sale of building 0 (7,500)

Rent expense 0 17,500

Retained earnings (45,000) (45,000)

Salary expense 0 35,000

Sales 0 (129,000)

Utilities expense 0 7,000

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 5,500 on July 1 of the current year.

Equipment was acquired on April 1, 2020.

Relevant exchange rates for 1 Kr were as follows:

2013$2.40

2014 2.20

January 1, 2020 2.50

April 1, 2020 2.60

July 1, 2020 2.80

October 1, 2020 2.90

December 31, 2020 3.00

Average for 2020 2.70

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 $93,200, which included a remeasurement loss of $12,950.

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 $110,000 and a cumulative translation adjustment of $9,900 (credit balance).