The following account balances are for the Agee Company as ofJanuary 1, 2017, and December 31, 2017. All amounts are denominatedin 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 onApril 1, 2017. Common stock at January 1, 2017, was sold at thestart of operations in 2010.

• Agee purchased buildings in 2011 and sold one building with abook 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 isthe 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 (creditbalance).