Question

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?


$1.99
Sales1
Views226
Comments0
  • CreatedOctober 04, 2014
  • Files Included
Post your question
5000