Subject: accounting The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amountsare denominated in kroner (Kr).Accounts payableAccounts receivableOAccumulated depreciation-buildingsAccumulated depreciation-equipmentBonds payable-due 2023BuildingsCashCommon stockDepreciation expenseDividends (10/1/20)EquipmentGain on sale of buildingRent expenseRetained earnings.Salary expenseSalesUtilities expense20132014January 1,2020April 1, 2020July 1, 2020October 1,2020December 31,2020Average for2020$2.402.202.502.602.802.90Relevant exchange rates for 1 Kr were as follows:3.002.70January 1,2020(18,000)35,000(20,000)0(50,000)118,00035,000(70,000)Additional InformationAgee 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 16,000 on July 1 of the current year.Equipment was acquired on April 1, 2020.Oa. Remeasurement gainTranslationlb.adjustmentpositive000(30,000)000(For all requirements, input all answers as positive.)00December 31,2020(24,000)79,000(25,000)(5,000)(50,000)97,0008,000(80,000)15,00032,00030,000(6,000)14,000(30,000)20,000a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2020? The December31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $52,600, which included aremeasurement loss of $12,200.(80,000)5,000b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $80,000 and a cumulative translationadjustment of $2,000 (credit balance).

Remeasurement is the process of re-establishing the value of an item to provide a more accurate…

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 $52,600, which included a remeasurement loss of $12,200. 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 $80,000 and a cumulative translation adjustment of $2,000 (credit balance). (For all requirements, input all answers as positive.) a. Remeasurement Translation b. adjustment gain positive