Chapter 12 Homework (10 points): On January 1, 2008, Pace Company acquired all of the outstanding stock of Spin PLC, a British Company, for 280,000 pounds (). Spin's net assets on the date of acquisition were 240,000 pounds (). On January 1, 2008, the book and fair values of the Spin's identifiable assets and liabilities approximated their fair values. The differential was attributable to a trademark having an estimated useful life of 10 years. Spin's trial balance on December 31, 2008, in pounds, follows: In British Pounds Debits Credit Cash 160,000 Inventory_ 120,000 Plant & Equipment 330,000 Cost of Goods Sold 270,000 Operating Expense 60,000 Depreciation Expense 30,000 Dividends 10,000 Accumulated Depreciation 120,000 Accounts Payable 200,000 Common Stock 90,000 Retained Earnings 150,000 Sales Revenue 420,000 Total 980,000 980.000 Additional Information The dividends were declared and paid on November 1, 2008 and immediately converted to U.S. dollars. Exchange rates were as follows: . Exchange rates were as follows: March 1, 2006 1= $1.20 December 31, 2007 1= $1.25 January 1, 2008 1= $1.25 November 1, 2008 1= $1.26 December 26 2008 1= $1.31 December 31, 2008 1= $1.35 Average for 2008 1= $1.30 Instructions: Complete the Excel worksheet showing the following: 1) calculation of the differential at point of purchase. 2) schedule translating the trial balance from British pounds into U.S. dollars. 3) journal entries that relate to Pace's investment in the British subsidiary during 2008. (Assume that Pace uses the fully adjusted equity method.) 4) consolidation entries and consolidation worksheet