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).

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 1,500 on July 1 of the current year.
• Equipment was acquired on April 1, 2020.

Relevant exchange rates for 1 Kr were as follows:

2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.90

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2.70

January 1, 2020 . . . . . . . . . . . . . . . . . . . . . . .     3.00

April 1, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . .    3.10

July 1, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . .    3.30

October 1, 2020 . . . . . . . . . . . . . . . . . . . . . . .    3.40

December 31, 2020 . . . . . . . . . . . . . . . . . . . .    3.50

Average for 2020 . . . . . . . . . . . . . . . . . . . . . .    3.20

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 $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 2020? The December 31, 2019, 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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January 1, 202o December 31, 2020 Accounts payable (15,000) 54,000 (25,000) 104,000 Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2023 Buildings (45,000) -0- (64,000) 134,000 60,000 (69,000) (50,000) (7,500) (64,000) 105,000 Cash 10,500 Common stock (82,000) Depreciation expense Dividends (10/1/20) Equipment . Gain on sale of building Rent expense Retained earnings Salary expense -0- 40,000 57,000 64,000 -0- (8,500) 21,500 (55,000) 45,000 -0- (55,000) -0- (162,000) 7,000 Sales -0- Utilities expense -0-