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The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).

Additional Information

• Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.

• Agee purchased buildings in 2011 and sold one building with a book value of Kr 8,700 on July 1 of the current year.

• Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

1. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $85,350, which included a remeasurement loss of $12,550.

2. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $97,500, and a cumulative translation adjustment of $14,550 (credit balance).

January 1, 2017 (7,000) 36,000 (27,000) (57,000) 116,000 42,000 (66,000) Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2020 Buildings Cash Common stock Depreciation expense Dividends (10/1/17) Equipment Gain on sale of building Rent expense Retained earnings Salary expense Sales Utilities expense December 31, 2017 (14,000) 86,000 (32,000) (5,700) (57,000) 96,000 8,700 (82,000) 22,000 39,000 37,000 (6,700) 18,200 (37,000) 27,000 (108,000) 8,500 (37,000) 2010 2011 January 1, 2017 April 1, 2017 July 1, 2017 October 1, 2017 December 31, 2017 Average for 2017 $ 2.75 2.55 2.85 2.95 3.15 3.25 3.35 3.05 Remeasurement Translation adjustment January 1, 2017 (7,000) 36,000 (27,000) (57,000) 116,000 42,000 (66,000) Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2020 Buildings Cash Common stock Depreciation expense Dividends (10/1/17) Equipment Gain on sale of building Rent expense Retained earnings Salary expense Sales Utilities expense December 31, 2017 (14,000) 86,000 (32,000) (5,700) (57,000) 96,000 8,700 (82,000) 22,000 39,000 37,000 (6,700) 18,200 (37,000) 27,000 (108,000) 8,500 (37,000) 2010 2011 January 1, 2017 April 1, 2017 July 1, 2017 October 1, 2017 December 31, 2017 Average for 2017 $ 2.75 2.55 2.85 2.95 3.15 3.25 3.35 3.05 Remeasurement Translation adjustment

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