The following account balances are for the Agee Company as of January 1, 2013, and December 31,2013. All figures are denominated in kroner (Kr). January 1,2013
December 31, 2013
Accounts payable (18,000) (24,000)
Accounts receivable 35,000 79,000
Accumulated depreciation—buildings (20,000) (25,000)
Accumulated depreciation—equipment -0- (5,000)
Bonds payable—due 2016. (50,000) (50,000)
Buildings 118,000 97,000
Cash 35,000 8,000
Common stock (70,000) (80,000)
Depreciation expense -0- 15,000
Dividends (10/1/13) -0- 32,000
Equipment -0- 30,000
Gain on sale of building -0- (6,000)
Rent expense -0- 14,000
Retained earnings (30,000) (30,000)
Salary expense -0- 20,000
Sales -0- (80,000)
Utilities expense -0- 5,000
Additional Information
Agee issued additional shares of common stock during the year on April 1, 2013. Common stock at January 1,2013, 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 1,2013.
Relevant exchange rates for 1 Kr were as follows:
2004 $2.40
2005 2.20
January 1,2013 2.50
April 1,2013 2.60
July 1,2013 2.80
October 1,2013 2.90
December 31, 2013 3.00
Average for 2013 2.70
a. Assuming the U. S. dollar is the functional currency and retained earnings at January 1, 2013, total $52,600. what is the remeasurement gain or loss for 2013?
b. Assuming the foreign currency is the functional currency and retained earnings at January 1, 2013, total $62,319, what is the translation adjustment for 2013?