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 $ 2.50 2.30 2.60 2.70 2.90 3.00 3.10 2.80 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 $101,600, which included a remeasurement loss of $13,050. 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 $115,000 and a cumulative translation adjustment of $13,300 (credit balance).
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 $ 2.50 2.30 2.60 2.70 2.90 3.00 3.10 2.80 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 $101,600, which included a remeasurement loss of $13,050. 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 $115,000 and a cumulative translation adjustment of $13,300 (credit balance).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not Give image format
Transcribed Image Text:Relevant exchange rates for 1 Kr were as follows:
K
2013
2014
January 1, 2020
April 1, 2020
July 1, 2020
October 1, 2020
December 31, 2020
Average for 2020
$ 2.50
2.30
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 $101,600, which included a remeasurement loss of $13,050.
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 $115,000 and a cumulative translation adjustment of $13,300 (credit
balance).
a. Remeasurement
b.
2.60
2.70
2.90
3.00
3.10
2.80
(For all requirements, input all answers as positive.)
Translation adjustment
Answer is not complete.
gain
positive
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
Buildi
Buildings
Cach
Cash
Comme
Common stock
Depreciation expense
Dividends (10/1/20)
Equipment
Gain on sale of building
Pont
Rent expense
Retained earnings
Salary expense
Sales
Utilities expense
January 1, 2020
(23,000)
46,000
(37,000)
0
(56,000)
126,000
52,000
(61,000)
0
6
0
0
0
0
0
0
(47,000)
0
0
0
December 31, 2020
(29,000)
96,000
(42,000)
(6,700)
(56,000)
101,000
9,700
33,000)
(73,000)
32 000
32,000
49 000
49,000
42.000
47,000
(7,700)
18,700
(47,000)
37,000
(137,000)
8,000
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 4,700 on July 1 of the current year.
Equipment was acquired on April 1, 2020.
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