The following account balances are for the Agee Company as of January 1, 2024, and December 31, 2024. All amounts are denominated in kroner (Kr).

Additional Information

∙ Agee issued additional shares of common stock during the year on April 1, 2024. Common stock on January 1, 2024, was sold at the start of operations in 2017.

∙ Agee purchased buildings in 2018 and sold one building with a book value of Kr 1,500 on July 1 of the current year.

∙ Equipment was acquired on April 1, 2024.

Relevant exchange rates for 1 Kr were as follows:

a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2024? The December 31, 2023, U.S. dollar–translated balance sheet reported retained earnings of $145,200, which included a remeasurement loss of $28,300.

b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2024? The December 31, 2023, U.S. dollar–translated balance sheet reported retained earnings of $162,250 and a cumulative translation adjustment of $9,650 (credit balance).

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Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2027 Buildings Cash .... Common stock Depreciation expense Dividends (10/1/24) Equipment ...... Gain on sale of building Rent expense Retained earnings Salary expense. Sales..... Utilities expense .... January 1, 2024 (15,000) 54,000 (45,000) (64,000) 134,000 60,000 (69,000) -0- (55,000) -0- -0- -0- December 31, 2024 (25,000) 104,000 (50,000) (7,500) (64,000) 105,000 10,500 (82,000) 40,000 57,000 64,000 (8,500) 21,500 (55,000) 45,000 (162,000) 7,000