The following account balances are for the Agee Company as of January 1, 2020, and December...

 

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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 (Kr). Accounts payable Accounts receivable Accumulated depreciation buildings Accumulated depreciation equipment Bands payable-due 2023 Buildings Cash Cormon stock Depreciation expense Dividends (18/1/20) Equipment Gain on sale of building Rent expense Retained earnings Salary expense Sales utilities expense Relevant exchange rates for 1 Kr were as follows: 2013 2014 January 1, 2820 April 1, 2828 July 1, 2020 October 1, 2820 December 31, 2020 Average for 2020 $ 2.65 2.45 2.75 2.85 3.05 3.15 3.25 2.95 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 9,500 on July 1 of the current year. • Equipment was acquired on April 1, 2020. (For all requirements, Input all answers as positive.) Remeasurement Translation adjustment January 1, 2020 (9,000) 34,000 (25,000) e (55,000) 114,000 40,000 (64,020) gain positive 0 e e e e (35,000) e e @ December 31, 2828 (19,000) 84,000 (30,000) (5,500) (55,000) 95,000 8,500 (78,000) 20,000 37,000 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 $75,950, which included a remeasurement loss of $12,450. 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 $92,500 and a cumulative translation adjustment of $10,150 (credit balance). 35,000 (6,500) 17,000 (35,000) 25,000 (100,000) 7,500 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 Accounts receivable Accumulated depreciation buildings Accumulated depreciation equipment Bands payable-due 2023 Buildings Cash Cormon stock Depreciation expense Dividends (18/1/20) Equipment Gain on sale of building Rent expense Retained earnings Salary expense Sales utilities expense Relevant exchange rates for 1 Kr were as follows: 2013 2014 January 1, 2820 April 1, 2828 July 1, 2020 October 1, 2820 December 31, 2020 Average for 2020 $ 2.65 2.45 2.75 2.85 3.05 3.15 3.25 2.95 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 9,500 on July 1 of the current year. • Equipment was acquired on April 1, 2020. (For all requirements, Input all answers as positive.) Remeasurement Translation adjustment January 1, 2020 (9,000) 34,000 (25,000) e (55,000) 114,000 40,000 (64,020) gain positive 0 e e e e (35,000) e e @ December 31, 2828 (19,000) 84,000 (30,000) (5,500) (55,000) 95,000 8,500 (78,000) 20,000 37,000 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 $75,950, which included a remeasurement loss of $12,450. 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 $92,500 and a cumulative translation adjustment of $10,150 (credit balance). 35,000 (6,500) 17,000 (35,000) 25,000 (100,000) 7,500

Answer rating: 100% (QA)

Solution Requirement A Remeasurement Gain or Loss Net Monetary Assets 112... View the full answer