The following account balances are for the Agee Company as of January 1, 2015, and December...
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The following account balances are for the Agee Company as of January 1, 2015, and December 31, 2015. All figures are denominated in kroner (Kr). December January 1, 2015 31, 2015 (25,500) (20,000) Accounts payable Accounts receivable 49,000 99.000 (40,000) (45,000) Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2018 0 (7,000) (59,000) (59,000) 129,000 102.500 Buildings Cash 55,000 10,000 Common stock (64,000) (75,000) 0 35.000 Depreciation expense Dividends (10/1/15) 0 52.000 Equipment 0 50,000 Gain on sale of building 0 (8,000) Rent expense 0 19,500 Retained earnings (50,000) (50,000) Salary expense 0 40.000 Sales 0 (148,000) 9,500 Utilities expense 0 Additional Information • Agee issued additional shares of common stock during the year on April 1, 2015. Common stock at January 1, 2015, was sold at the start of operations in 2004 It purchased buildings in 2005 and sold one building with a book value of Kr 21,500 on July 1 of the current year. • Equipment was acquired on April 1, 2015. Relevant exchange rates for 1 Kr were as follows: 2004 $2.65 2005 2.45 January 1, 2015. 2.75 April 1, 2015 2.85 July 1, 2015 3.05. October 1, 2015 3.15 3.25 December 31, 2015 Average for 2015 2.95 a. Assuming the U.S. dollar is the functional currency what is the remeasurement gain or loss for 2015? Remeasurement b. Assuming the foreign currency is the functional currency what is the translation adjustment for 2015? 2/3 Translation adjustment The following account balances are for the Agee Company as of January 1, 2015, and December 31, 2015. All figures are denominated in kroner (Kr). December January 1, 2015 31, 2015 (25,500) (20,000) Accounts payable Accounts receivable 49,000 99.000 (40,000) (45,000) Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2018 0 (7,000) (59,000) (59,000) 129,000 102.500 Buildings Cash 55,000 10,000 Common stock (64,000) (75,000) 0 35.000 Depreciation expense Dividends (10/1/15) 0 52.000 Equipment 0 50,000 Gain on sale of building 0 (8,000) Rent expense 0 19,500 Retained earnings (50,000) (50,000) Salary expense 0 40.000 Sales 0 (148,000) 9,500 Utilities expense 0 Additional Information • Agee issued additional shares of common stock during the year on April 1, 2015. Common stock at January 1, 2015, was sold at the start of operations in 2004 It purchased buildings in 2005 and sold one building with a book value of Kr 21,500 on July 1 of the current year. • Equipment was acquired on April 1, 2015. Relevant exchange rates for 1 Kr were as follows: 2004 $2.65 2005 2.45 January 1, 2015. 2.75 April 1, 2015 2.85 July 1, 2015 3.05. October 1, 2015 3.15 3.25 December 31, 2015 Average for 2015 2.95 a. Assuming the U.S. dollar is the functional currency what is the remeasurement gain or loss for 2015? Remeasurement b. Assuming the foreign currency is the functional currency what is the translation adjustment for 2015? 2/3 Translation adjustment
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Related Book For
Advanced Accounting
ISBN: 978-0077862220
12th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
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