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). January 1, 2020December 31, 2020Accounts payable (14,000) (22,000)Accounts receivable 40,000 90,000 Accumulated depreciation—buildings (31,000) (36,000)Accumulated depreciation—equipment 0 (6,100)Bonds payable—due 2023 (50,000) (50,000)Buildings 120,000 98,000 Cash 46,000 9,100 Common stock (70,000) (83,000)Depreciation expense 0 26,000 Dividends (10/1/20) 0 43,000 Equipment 0 41,000 Gain on sale of building 0 (7,100)Rent expense 0 15,100 Retained earnings (41,000) (41,000)Salary expense 0 31,000 Sales 0 (113,000)Utilities expense 0 5,000 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 7,100 on July 1 of the current year. Equipment was acquired on April 1, 2020. Relevant exchange rates for 1 Kr were as follows: 2013$2.952014 2.75January 1, 2020 3.05April 1, 2020 3.15July 1, 2020 3.35October 1, 2020 3.45December 31, 2020 3.55Average for 2020 3.25 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 $105,350, which included a remeasurement loss of $12,750. 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 $107,500 and a cumulative translation adjustment of $24,550 (credit balance).
