Question

The following account balances are for the Agee Company as ofJanuary 1, 2013, and December 31, 2013. All figures are denominatedin kroner (Kr).

	January 1,2013	December 31, 2013
Accounts payable	(7,000)	(14,000)
Accounts receivable	36,000	86,000
Accumulated depreciation—buildings	(27,000)	(32,000)
Accumulated depreciation—equipment	0	(5,700)
Bonds payable—due 2016	(57,000)	(57,000)
Buildings	116,000	96,000
Cash	42,000	8,700
Common stock	(66,000)	(82,000)
Depreciation expense	0	22,000
Dividends (10/1/13)	0	39,000
Equipment	0	37,000
Gainon sale of building	0	(6,700)
Rentexpense	0	18,200
Retained earnings	(37,000)	(37,000)
Salary expense	0	27,000
Sales	0	(108,000)
Utilities expense	0	8,500

AdditionalInformation

•	Agee issued additional shares of common stock during the year onApril 1, 2013. Common stock at January 1, 2013, was sold at thestart of operations in 2004.
•	It purchased buildings in 2005 and sold one building with a bookvalue of Kr 15,000 on July 1 of the current year.
•	Equipment wasacquired on April 1, 2013.
	Relevant exchange rates for 1 Kr were as follows:

2004	$	2.75
2005		2.55
January 1, 2013		2.85
April 1, 2013		2.95
July1, 2013		3.15
October 1, 2013		3.25
December 31, 2013		3.35
Average for 2013		3.05

a.	Assuming the U.S. dollar is the functional currency and retainedearnings at January 1, 2013, total $59,600, what is theremeasurement gain or loss for 2013? (Input the amount as apositive value.)

Remeasurement (Click to select)gainloss

$

b.	Assuming the foreign currency is the functional currency andretained earnings at January 1, 2013, total $69,319, what is thetranslation adjustment for 2013? (Input the amount as apositive value.)

Translation adjustment (Click toselect)negativepositive

$