Help Save & Exit Subn On January 1,20X8, Pace Company acquired all of the outstanding stock of Spin PLC, a Brtish Company, for $350.000 Spin's net assets on the date facqustion were 250.000 pounds (5) On January 1, 20x8, the book and fair values of the Spin's identifiable assets and liabilities approximated their fair values except for plant, and equipment and trademarks. The fair value of Spin's property, plant, and equipment property, exceeded its book value by $25,000. The remaining useful life of Spin's equipment at January 1, 20X8, was 10 years. The remainder of the differential was attributable to a trademark having an estimated useful life of 5 years. Spin's trial balance on December 31, 20X8, in pounds, follows: 2 0129:43 Debits Credits Cash E 70,000 100,000 128,000 Accounts Receivable (net) Inventory Property, Plant, and Equipment Accumulated Depreciation Accounts Payable Notes Payable 330,000 120,000 110,000 90,000 100,000 150,000 Common Stock Retained Earnings Sales 420,000 Cost of Goods Sold 270,000 60,000 30,800 10,000 Operating Expenses Depreciation Expense Dividends Paid Total 990,000 990,000 rora 0129.% 01:2916 Additional Information 1. Spin uses the FIFO method for its inventor The beginning inventory was acquired on December 31, 20x7, and ending inventory was acquired on December 26, 20x8 Purchases of 300,000 were made evenly throughout 20X8 2. Spin acquired all of its property. plant, and equipment on March 1, 20X6, and uses straight-line depreciation 3. Spin's sales were made evenly throughout 20X8, and its operating expenses were incurred evenly throughout 20X8. 3. Spin's throughout 20X8 4. The dividends were declared and paid on November 1, 20X8 5. Pace's income from its own operations was $150.000 for 20X8, and its total stockholders' equity on January 1. 20X8, was $1,000.000. Pace declared $50,000 of dividends during 20X8. 6. Exchange rates were as follows sales were made evenly throughout 20X8, and its operating expenses were incurred evenly 541a 01:23.50 March 1, 20x6 $1 . 20 December 31, 20x7 Danuary 1, 20x8 November 1, 20x8 December 26, 20x8 December 31, 20x8 Average for 20XS 1E $1.25 1E $1.25 1E $1.26 1E- $5.31 1 $1.35 1E $1.30 akeup final part 2 Saved Help Save & Exit December 31, 20x8 1E $1.35 1E $1.30 Average for 20x8 5 Assume the U.S. dollar is the functional currency, not the pound. Prepare a schedule providing a proof of the remeasurement gain or loss. Assume that the British subsidiary had the following monetary assets and 0120:33liabilities at January 1, 20x8 Monetary Assets E 40,000 70,000 Cash Accounts Receivable (net) Monetary Liabilities Accounts Payable Notes Payable E105,000 85,000