The following account balances are for the Agee Company as of January 1, 2011, and December 31, 2011. All figures are denominated in kroner (Kr).

Additional Information

• Agee issued additional shares of common stock during the year on April 1, 2011. Common stock at January 1, 2011, was sold at the start of operations in 2004.

• It purchased buildings in 2005 and sold one building with a book value of Kr 16,000 on July 1 of the current year.

• Equipment was acquired on April 1, 2011.

Relevant exchange rates for 1 Kr were as follows:

2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.40

2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.20

January 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.50

April 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.60

July 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.80

October 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . .  2.90

December 31, 2011 . . . . . . . . . . . . . . . . . . . . . .  3.00

Average for 2011 . . . . . . . . . . . . . . . . . . . . . . . . 2.70

a. Assuming the U.S. dollar is the functional currency and retained earnings at January 1, 2011, was $52,600, what is the remeasurement gain or loss for 2011?

b. Assuming the foreign currency is the functional currency and retained earnings at January 1, 2011, was $62,319, what is the translation adjustment for 2011?

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January 1, 2011 December 31, 2011 3 Accounts receivable Accumulated deprec Accumulated depreciation-equipment Bonds payable-due 2014 ation-buildings 5 Dividends (10/1/11) Gain on sale of building Rent expense Retained earnings