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). Buildings Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2023 Cash January 1, 2020 (14,000) December 31, 2020 (22,000) 40,000 (31,000) 0 (50,000) 120,000 46,000 Common stock (70,000) 90,000 (36,000) (6,100) (50,000) 98,000 9,100 (83,000) Depreciation expense Ө 26,000 Dividends (10/1/20) 0 43,000 Equipment 0 41,000 Gain on sale of building 0 (7,100) Rent expense 0 15,100 Retained earnings (41,000) (41,000) Salary expense Sales Utilities expense 0 0 0 31,000 (113,000) 5,000 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 7,100 on July 1 of the current year. Equipment was acquired on April 1, 2020. о Relevant exchange rates for 1 Kr were as follows: 2013 2014 $ 2.95 2.75 January 1, 2020 3.05 April 1, 2020 3.15 July 1, 2020 3.35 October 1, 2020 3.45 December 31, 2020 3.55 Average for 2020 3.25

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

See similar textbooks

Related questions

Question

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 $105,350, which included a remeasurement loss of $12,750.

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 $107,500 and a cumulative translation adjustment of $24,550 (credit balance).

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).
Buildings
Accounts payable
Accounts receivable
Accumulated depreciation-buildings
Accumulated depreciation-equipment
Bonds payable-due 2023
Cash
January 1, 2020
(14,000)
December 31, 2020
(22,000)
40,000
(31,000)
0
(50,000)
120,000
46,000
Common stock
(70,000)
90,000
(36,000)
(6,100)
(50,000)
98,000
9,100
(83,000)
Depreciation expense
Ө
26,000
Dividends (10/1/20)
0
43,000
Equipment
0
41,000
Gain on sale of building
0
(7,100)
Rent expense
0
15,100
Retained earnings
(41,000)
(41,000)
Salary expense
Sales
Utilities expense
0
0
0
31,000
(113,000)
5,000
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 7,100 on July 1 of the current year.
Equipment was acquired on April 1, 2020.
о
Relevant exchange rates for 1 Kr were as follows:
2013
2014
$ 2.95
2.75
January 1, 2020
3.05
April 1, 2020
3.15
July 1, 2020
3.35
October 1, 2020
3.45
December 31, 2020
3.55
Average for 2020
3.25

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here