The following account balances are for the Agee Company as of January 1, 2024, and December 31, 2024. All amounts are denominated in kroner (Kr). Accounts payable Accounts receivable. Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2027 Buildings Cash Common stock . Depreciation expense Dividends (10/1/24) Equipment Gain on sale of building Rent expense 2017 2018 January 1, 2024 April 1, 2024 July 1, 2024 October 1, 2024 December 31, 2024 Average for 2024 2.65 2.85 2.95 3.05 2.75 a. Remeasurement b. Translation adjustment January 1, 2024 (24,000) 45,000 (36,000) 0 gain positive (55,000) 125,000 Retained earnings Salary expense Sales Utilities expense Additional Information Agee issued additional shares of common stock during the year on April 1, 2024. Common stock on January 1, 2024, was sold at the start of operations in 2017. Agee purchased buildings in 2018 and sold one building with a book value of Kr 5,100 on July 1 of the current year. Equipment was acquired on April 1, 2024. Relevant exchange rates for 1 Kr were as follows: $2.45 2.25 2.55 51,000 (60,000) 0 0 0 0 0 (46,000) December 31, 2024 (31,500) 95,000 (41,000) (6,600) (55,000) 100,500 9,600 (71,000) 31,000 48,000 0 0 0 46,000 (7,600) 18,100 (46,000) 36,000 (133,000) 7,500 Required: a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2024? The December 31, 2023, 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 2024? The December 31, 2023, U.S dollar-translated balance sheet reported retained earnings of $112,500 and a cumulative translation adjustment of $10,800 (credit balance). Note: For all requirements, input all answers as positive.
The following account balances are for the Agee Company as of January 1, 2024, and December 31, 2024. All amounts are denominated in kroner (Kr). Accounts payable Accounts receivable. Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2027 Buildings Cash Common stock . Depreciation expense Dividends (10/1/24) Equipment Gain on sale of building Rent expense 2017 2018 January 1, 2024 April 1, 2024 July 1, 2024 October 1, 2024 December 31, 2024 Average for 2024 2.65 2.85 2.95 3.05 2.75 a. Remeasurement b. Translation adjustment January 1, 2024 (24,000) 45,000 (36,000) 0 gain positive (55,000) 125,000 Retained earnings Salary expense Sales Utilities expense Additional Information Agee issued additional shares of common stock during the year on April 1, 2024. Common stock on January 1, 2024, was sold at the start of operations in 2017. Agee purchased buildings in 2018 and sold one building with a book value of Kr 5,100 on July 1 of the current year. Equipment was acquired on April 1, 2024. Relevant exchange rates for 1 Kr were as follows: $2.45 2.25 2.55 51,000 (60,000) 0 0 0 0 0 (46,000) December 31, 2024 (31,500) 95,000 (41,000) (6,600) (55,000) 100,500 9,600 (71,000) 31,000 48,000 0 0 0 46,000 (7,600) 18,100 (46,000) 36,000 (133,000) 7,500 Required: a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2024? The December 31, 2023, 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 2024? The December 31, 2023, U.S dollar-translated balance sheet reported retained earnings of $112,500 and a cumulative translation adjustment of $10,800 (credit balance). Note: For all requirements, input all answers as positive.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The following account balances are for the Agee Company as of January 1, 2024, and December 31, 2024. All amounts are
denominated in kroner (Kr).
Accounts payable
Accounts receivable
Accumulated depreciation-buildings
Accumulated depreciation-equipment
Bonds payable-due 2027
Buildings
Cash
Common stock
Depreciation expense
Dividends (10/1/24)
Equipment
●
Gain on sale of building
Rent expense
Retained earnings
Salary expense
Sales
Utilities expense
Additional Information
2017
2018
January 1, 2024
April 1, 2024
July 1, 2024
October 1, 2024
December 31, 2024
Average for 2024
Agee issued additional shares of common stock during the year on April 1, 2024. Common stock on January 1, 2024, was sold at
the start of operations in 2017.
• Agee purchased buildings in 2018 and sold one building with a book value of Kr 5,100 on July 1 of the current year.
Equipment was acquired on April 1, 2024.
Relevant exchange rates for 1 Kr were as follows:
$2.45
2.25
2.55
2.65
2.85
2.95
3.05
2.75
a. Remeasurement
b. Translation adjustment
January 1,
2024
(24,000)
45,000
(36,000)
0
(55,000)
125,000
51,000
(60,000)
gain
positive
0
0
0
0
0
(46,000)
0
0
0
December 31,
2024
(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
Required:
a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2024? The December 31, 2023, 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 2024? The December 31, 2023, U.S.
dollar-translated balance sheet reported retained earnings of $112,500 and a cumulative translation adjustment of $10,800 (credit
balance).
Note: For all requirements, input all answers as positive.
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