The following account balances are for the Agee Company as of January 1, 2015, a
ID: 2529363 • Letter: T
Question
The following account balances are for the Agee Company as of January 1, 2015, and December 31, 2015 All figures are denominated in kroner (Kr) December 31, 2015 (23,000) (29,000) 96,000 (37,000) (42,000) (6,700) (56,000)(56,000) 101,000 9,700 (61,000) (73,000) 32,000 49,000 47,000 (7,700) 18,700 (47,000) (47,000) 37,000 0 137,000) 8,000 January1 2015 Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2018 Buildings Cash Common stock Depreciation expense Dividends (10/1/15) Equipment Gain on Rent expense Retained earnings Salary expense Sales Utilities expense 46,000 126,000 52,000 0 sale of building 0 0 Additional Information . Agee issued additional shares of common stock during the year on April 1, 2015. Common stock at January 1, 2015, was sold at the start of operations in 2004 . It purchased buildings in 2005 and sold one building with a book value of Kr 20,000 on July 1 of the current year. Equipment was acquired on April 1, 2015 Relevant exchange rates for 1 Kr were as followsExplanation / Answer
Assuming the U.S. dollar is the functional currency what is the remeasurement gain or loss for 2015
Assuming the foreign currency is the functional currency what is the translation adjustment for 2015
Sale of building
Kr
$
Sale price in 2015
13,000
$ 4,407
Purchased price in 2005
10,356
$ 3,510
Gain
2,644
$ 896
Common Stock
Kr
$
common stock value in Jan 1 - 2015
62,000
$ 23,396
common stock value in 2004
59,660
$ 23,396
common stock value in Dec - 2015
73,698
$ 23,396
Gain
14,038
-
Equipment
Kr
$
value in Apr 1 - 2015
28,810
$ 10,476
value in Dec - 2015
33,000
$ 10,476
Gain
4,190
$ 1,330
Sale of building
Kr
$
Sale price in 2015
13,000
$ 4,407
Purchased price in 2005
10,356
$ 3,510
Gain
2,644
$ 896
Common Stock
Kr
$
common stock value in Jan 1 - 2015
62,000
$ 23,396
common stock value in 2004
59,660
$ 23,396
common stock value in Dec - 2015
73,698
$ 23,396
Gain
14,038
-
Equipment
Kr
$
value in Apr 1 - 2015
28,810
$ 10,476
value in Dec - 2015
33,000
$ 10,476
Gain
4,190
$ 1,330