Question: The following account balances are for the Agee Company as

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 for2011?


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  • CreatedOctober 04, 2014
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