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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (13,000 | ) | (19,500 | ) | ||
| Accounts receivable | 41,000 | 91,000 | ||||
| Accumulated depreciation—buildings | (32,000 | ) | (37,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (6,200 | ) | |||
| Bonds payable—due 2020 | (51,000 | ) | (51,000 | ) | ||
| Buildings | 121,000 | 98,500 | ||||
| Cash | 47,000 | 9,200 | ||||
| Common stock | (71,000 | ) | (85,000 | ) | ||
| Depreciation expense | 0 | 27,000 | ||||
| Dividends (10/1/17) | 0 | 44,000 | ||||
| Equipment | 0 | 42,000 | ||||
| Gain on sale of building | 0 | (7,200 | ) | |||
| Rent expense | 0 | 15,700 | ||||
| Retained earnings | (42,000 | ) | (42,000 | ) | ||
| Salary expense | 0 | 32,000 | ||||
| Sales | 0 | (117,000 | ) | |||
| Utilities expense | 0 | 5,500 | ||||
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 17,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 3.00 |
| 2011 | 2.80 | |
| January 1, 2017 | 3.10 | |
| April 1, 2017 | 3.20 | |
| July 1, 2017 | 3.40 | |
| October 1, 2017 | 3.50 | |
| December 31, 2017 | 3.60 | |
| Average for 2017 | 3.30 | |
A. 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 $145,200, which included a remeasurement loss of $28,300.
B. 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 $162,250, and a cumulative translation adjustment of $9,650 (credit balance).
In: Accounting
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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (20,000 | ) | (25,500 | ) | ||
| Accounts receivable | 49,000 | 99,000 | ||||
| Accumulated depreciation—buildings | (40,000 | ) | (45,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (7,000 | ) | |||
| Bonds payable—due 2020 | (59,000 | ) | (59,000 | ) | ||
| Buildings | 129,000 | 102,500 | ||||
| Cash | 55,000 | 10,000 | ||||
| Common stock | (64,000 | ) | (75,000 | ) | ||
| Depreciation expense | 0 | 35,000 | ||||
| Dividends (10/1/17) | 0 | 52,000 | ||||
| Equipment | 0 | 50,000 | ||||
| Gain on sale of building | 0 | (8,000 | ) | |||
| Rent expense | 0 | 19,500 | ||||
| Retained earnings | (50,000 | ) | (50,000 | ) | ||
| Salary expense | 0 | 40,000 | ||||
| Sales | 0 | (148,000 | ) | |||
| Utilities expense | 0 | 9,500 | ||||
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 3,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.65 |
| 2011 | 2.45 | |
| January 1, 2017 | 2.75 | |
| April 1, 2017 | 2.85 | |
| July 1, 2017 | 3.05 | |
| October 1, 2017 | 3.15 | |
| December 31, 2017 | 3.25 | |
| Average for 2017 | 2.95 | |
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 $117,200, which included a remeasurement loss of $13,200.
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 $122,500, and a cumulative translation adjustment of $21,400 (credit balance).
In: Accounting
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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (10,000 | ) | (21,500 | ) | ||
| Accounts receivable | 33,000 | 83,000 | ||||
| Accumulated depreciation—buildings | (24,000 | ) | (29,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (5,400 | ) | |||
| Bonds payable—due 2020 | (54,000 | ) | (54,000 | ) | ||
| Buildings | 113,000 | 94,500 | ||||
| Cash | 39,000 | 8,400 | ||||
| Common stock | (63,000 | ) | (76,000 | ) | ||
| Depreciation expense | 0 | 19,000 | ||||
| Dividends (10/1/17) | 0 | 36,000 | ||||
| Equipment | 0 | 34,000 | ||||
| Gain on sale of building | 0 | (6,400 | ) | |||
| Rent expense | 0 | 16,400 | ||||
| Retained earnings | (34,000 | ) | (34,000 | ) | ||
| Salary expense | 0 | 24,000 | ||||
| Sales | 0 | (96,000 | ) | |||
| Utilities expense | 0 | 7,000 | ||||
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 13,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.60 |
| 2011 | 2.40 | |
| January 1, 2017 | 2.70 | |
| April 1, 2017 | 2.80 | |
| July 1, 2017 | 3.00 | |
| October 1, 2017 | 3.10 | |
| December 31, 2017 | 3.20 | |
| Average for 2017 | 2.90 | |
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 $145,200, which included a remeasurement loss of $28,300.
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 $162,250, and a cumulative translation adjustment of $9,650 (credit balance).
| a | remeasurement | gain or loss | |
| b | translation adjustment | positive or negative |
In: Accounting
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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (18,000 | ) | (24,000 | ) | ||
| Accounts receivable | 35,000 | 79,000 | ||||
| Accumulated depreciation—buildings | (20,000 | ) | (25,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (5,000 | ) | |||
| Bonds payable—due 2020 | (50,000 | ) | (50,000 | ) | ||
| Buildings | 118,000 | 97,000 | ||||
| Cash | 35,000 | 8,000 | ||||
| Common stock | (70,000 | ) | (80,000 | ) | ||
| Depreciation expense | 0 | 15,000 | ||||
| Dividends (10/1/17) | 0 | 32,000 | ||||
| Equipment | 0 | 30,000 | ||||
| Gain on sale of building | 0 | (6,000 | ) | |||
| Rent expense | 0 | 14,000 | ||||
| Retained earnings | (30,000 | ) | (30,000 | ) | ||
| Salary expense | 0 | 20,000 | ||||
| Sales | 0 | (80,000 | ) | |||
| Utilities expense | 0 | 5,000 | ||||
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 16,000 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.40 |
| 2011 | 2.20 | |
| January 1, 2017 | 2.50 | |
| April 1, 2017 | 2.60 | |
| July 1, 2017 | 2.80 | |
| October 1, 2017 | 2.90 | |
| December 31, 2017 | 3.00 | |
| Average for 2017 | 2.70 | |
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 $145,200, which included a remeasurement loss of $28,300.
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 $162,250, and a cumulative translation adjustment of $9,650 (credit balance).
In: Accounting
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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (15,000 | ) | (25,000 | ) | ||
| Accounts receivable | 54,000 | 104,000 | ||||
| Accumulated depreciation—buildings | (45,000 | ) | (50,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (7,500 | ) | |||
| Bonds payable—due 2020 | (64,000 | ) | (64,000 | ) | ||
| Buildings | 134,000 | 105,000 | ||||
| Cash | 60,000 | 10,500 | ||||
| Common stock | (69,000 | ) | (82,000 | ) | ||
| Depreciation expense | 0 | 40,000 | ||||
| Dividends (10/1/17) | 0 | 57,000 | ||||
| Equipment | 0 | 64,000 | ||||
| Gain on sale of building | 0 | (8,500 | ) | |||
| Rent expense | 0 | 21,500 | ||||
| Retained earnings | (55,000 | ) | (55,000 | ) | ||
| Salary expense | 0 | 45,000 | ||||
| Sales | 0 | (162,000 | ) | |||
| Utilities expense | 0 | 7,000 | ||||
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 1,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.90 |
| 2011 | 2.70 | |
| January 1, 2017 | 3.00 | |
| April 1, 2017 | 3.10 | |
| July 1, 2017 | 3.30 | |
| October 1, 2017 | 3.40 | |
| December 31, 2017 | 3.50 | |
| Average for 2017 | 3.20 | |
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 $145,200, which included a remeasurement loss of $28,300.
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 $162,250, and a cumulative translation adjustment of $9,650 (credit balance).
In: Accounting
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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (4,000 | ) | (13,500 | ) | ||
| Accounts receivable | 39,000 | 89,000 | ||||
| Accumulated depreciation—buildings | (30,000 | ) | (35,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (6,000 | ) | |||
| Bonds payable—due 2020 | (60,000 | ) | (60,000 | ) | ||
| Buildings | 119,000 | 97,500 | ||||
| Cash | 45,000 | 9,000 | ||||
| Common stock | (69,000 | ) | (81,000 | ) | ||
| Depreciation expense | 0 | 25,000 | ||||
| Dividends (10/1/17) | 0 | 42,000 | ||||
| Equipment | 0 | 40,000 | ||||
| Gain on sale of building | 0 | (7,000 | ) | |||
| Rent expense | 0 | 20,000 | ||||
| Retained earnings | (40,000 | ) | (40,000 | ) | ||
| Salary expense | 0 | 30,000 | ||||
| Sales | 0 | (120,000 | ) | |||
| Utilities expense | 0 | 10,000 | ||||
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 16,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.90 |
| 2011 | 2.70 | |
| January 1, 2017 | 3.00 | |
| April 1, 2017 | 3.10 | |
| July 1, 2017 | 3.30 | |
| October 1, 2017 | 3.40 | |
| December 31, 2017 | 3.50 | |
| Average for 2017 | 3.20 | |
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 $145,200, which included a remeasurement loss of $28,300.
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 $162,250, and a cumulative translation adjustment of $9,650 (credit balance).
In: Accounting
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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (18,000 | ) | (32,500 | ) | ||
| Accounts receivable | 51,000 | 101,000 | ||||
| Accumulated depreciation—buildings | (42,000 | ) | (47,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (7,200 | ) | |||
| Bonds payable—due 2020 | (61,000 | ) | (61,000 | ) | ||
| Buildings | 131,000 | 103,500 | ||||
| Cash | 57,000 | 10,200 | ||||
| Common stock | (66,000 | ) | (76,000 | ) | ||
| Depreciation expense | 0 | 37,000 | ||||
| Dividends (10/1/17) | 0 | 54,000 | ||||
| Equipment | 0 | 61,000 | ||||
| Gain on sale of building | 0 | (8,200 | ) | |||
| Rent expense | 0 | 20,700 | ||||
| Retained earnings | (52,000 | ) | (52,000 | ) | ||
| Salary expense | 0 | 42,000 | ||||
| Sales | 0 | (151,000 | ) | |||
| Utilities expense | 0 | 5,500 | ||||
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 22,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.75 |
| 2011 | 2.55 | |
| January 1, 2017 | 2.85 | |
| April 1, 2017 | 2.95 | |
| July 1, 2017 | 3.15 | |
| October 1, 2017 | 3.25 | |
| December 31, 2017 | 3.35 | |
| Average for 2017 | 3.05 | |
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 $145,200, which included a remeasurement loss of $28,300.
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 $162,250, and a cumulative translation adjustment of $9,650 (credit balance).
(Input all answers as positive.)
In: Accounting
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).
|
January 1, 2017 |
December 31, 2017 |
|||||
|
Accounts payable |
(11,000 |
) |
(14,500 |
) |
||
|
Accounts receivable |
43,000 |
93,000 |
||||
|
Accumulated depreciation—buildings |
(34,000 |
) |
(39,000 |
) |
||
|
Accumulated depreciation—equipment |
0 |
(6,400 |
) |
|||
|
Bonds payable—due 2020 |
(53,000 |
) |
(53,000 |
) |
||
|
Buildings |
123,000 |
99,500 |
||||
|
Cash |
49,000 |
9,400 |
||||
|
Common stock |
(73,000 |
) |
(89,000 |
) |
||
|
Depreciation expense |
0 |
29,000 |
||||
|
Dividends (10/1/17) |
0 |
46,000 |
||||
|
Equipment |
0 |
44,000 |
||||
|
Gain on sale of building |
0 |
(7,400 |
) |
|||
|
Rent expense |
0 |
16,900 |
||||
|
Retained earnings |
(44,000 |
) |
(44,000 |
) |
||
|
Salary expense |
0 |
34,000 |
||||
|
Sales |
0 |
(125,000 |
) |
|||
|
Utilities expense |
0 |
6,500 |
||||
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 5,900 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
|
2010 |
$ |
2.35 |
|
2011 |
2.15 |
|
|
January 1, 2017 |
2.45 |
|
|
April 1, 2017 |
2.55 |
|
|
July 1, 2017 |
2.75 |
|
|
October 1, 2017 |
2.85 |
|
|
December 31, 2017 |
2.95 |
|
|
Average for 2017 |
2.65 |
A) 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 $88,400, which included a remeasurement loss of $12,900.
B) 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 $107,500, and a cumulative translation adjustment of $7,600 (credit balance).
In: Accounting
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).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (15,000 | ) | (25,000 | ) | ||
| Accounts receivable | 54,000 | 104,000 | ||||
| Accumulated depreciation—buildings | (45,000 | ) | (50,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (7,500 | ) | |||
| Bonds payable—due 2020 | (64,000 | ) | (64,000 | ) | ||
| Buildings | 134,000 | 105,000 | ||||
| Cash | 60,000 | 10,500 | ||||
| Common stock | (69,000 | ) | (82,000 | ) | ||
| Depreciation expense | 0 | 40,000 | ||||
| Dividends (10/1/17) | 0 | 57,000 | ||||
| Equipment | 0 | 64,000 | ||||
| Gain on sale of building | 0 | (8,500 | ) | |||
| Rent expense | 0 | 21,500 | ||||
| Retained earnings | (55,000 | ) | (55,000 | ) | ||
| Salary expense | 0 | 45,000 | ||||
| Sales | 0 | (162,000 | ) | |||
| Utilities expense | 0 | 7,000 | ||||
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 1,500 on July 1 of the current year.
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.90 |
| 2011 | 2.70 | |
| January 1, 2017 | 3.00 | |
| April 1, 2017 | 3.10 | |
| July 1, 2017 | 3.30 | |
| October 1, 2017 | 3.40 | |
| December 31, 2017 | 3.50 | |
| Average for 2017 | 3.20 | |
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 $145,200, which included a remeasurement loss of $28,300.
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 $162,250, and a cumulative translation adjustment of $9,650 (credit balance).
(Input all answers as positive.)
Remeasurment -------------------------?
Translation Adjustment ------------------------?
In: Accounting
The CEO of HuaWa Company is considering a five-year investment project of setting up a production factory in Shezhen of China for manufacturing 5G (5th Generation) mobile phones. You are a financial manager of the company. Under this current situation of China, explain to the CEO the major considerations and problems associated in the estimation of cashflow of this project. The CEO knows that there are (Internal Rate of Return) IRR and (Net Present Value) NPV methods to evaluate the project. When would it be better to use IRR rather than NPV method to examine the acceptability of the project in this case? The CEO also asks you if it is possible to have a positive initial cash flow at the beginning of the project. Respond also to this question of CEO and illustrate your explanation with example(s). (limit your answer to 450 words
In: Finance