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 $96,600, which included a remeasurement loss of $13,000. 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 $112,500 and a cumulative translation adjustment of $10,800 (credit balance). (For all requirements, input all answers as positive.) a. Remeasurement b. gain Translation adjustment positive $ $ 16,540 65,440
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 $96,600, which included a remeasurement loss of $13,000. 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 $112,500 and a cumulative translation adjustment of $10,800 (credit balance). (For all requirements, input all answers as positive.) a. Remeasurement b. gain Translation adjustment positive $ $ 16,540 65,440
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 $96,600, which included a
remeasurement loss of $13,000.
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 $112,500 and a cumulative
translation adjustment of $10,800 (credit balance).
(For all requirements, input all answers as positive.)
a. Remeasurement
gain
b. Translation adjustment positive
$
$
16,540
65,440
Transcribed Image Text: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).
Accounts payable
Accounts receivable
Accumulated depreciation-buildings
Accumulated depreciation-equipment
Bonds payable-due 2023
Buildings
Cash
Common stock
Depreciation expense
Dividends (10/1/20)
Equipment
O
Gain on sale of building
Rent expense
Retained earnings
Salary expense
Sales
Utilities expense
Additional Information
Relevant exchange rates for 1 Kr were as follows:
2013
2014
January 1, 2020
April 1, 2020
July 1, 2020
October 1, 2020
December 31, 2020
Average for 2020
$
2.25
2.55
January 1, 2020
(24,000)
45,000
(36,000)
0
(55,000)
125,000
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.
O
Agee purchased buildings in 2014 and sold one building with a book value of Kr 5,100 on July 1 of the current year.
o Equipment was acquired on April 1, 2020.
2.65
2.85
2.95
3.05
2.75
51,000
(60,000)
0
0
0
0
0
(46,000)
0
0
0
December 31, 2020
(31,500)
95,000
(41,000)
(6,600)
(55,000)
100,500
9,600
(71,000)
31,000
48,000
46,000
(7,600)
18, 100
(46,000)
36,000
(133,000)
7,500
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