On December 27, 2020 New York, a US corporation acquired all assets and Liabilities of a British company for 2000,000 sterling pound (E) which reflect both book and fair value. The exchange rate at the time of acquisition was $1:00 1.00 New York prepares the consolidated financial statements on December 31, 2020 when the sterling pound increased to $1:05 1.00. No other transactions took place during 2020. The following are the book and fair value to the acquired assets and liabilities: Item Cash Inventory at market Land Accounts Payable Sterling Pound () 200,000 300,000 2,300,000 800,000 (1) Assume that U.S. Dollar is the reporting currency and sterling pound () is the functional currency of the subsidiary Calculate the missing US Dollar (S) amounts, (A, B, C, D, E, and F). Indicate whether (G) is a positive or negative adjustment. (4 Marks) In your answer space write the letter and the amount only like the following example: (A) 50000 (B) 50000 Item Sterling Pound (E) Exchange Rate U.S. Dollar ($) Cash 200,000 (A) Inventory at market 300,000 (B) Land 2,300,000 (C) Total Assets Accounts Payable Equity 800,000 2000,000 (D) (E) (G) (F) Total Liab. & Equity (II) Assume that U.S. Dollar is the reporting currency and the functional currency of the subsidiary. Calculate the missing US Dollar (S) amounts, (T, U, U, V, W, and Y). Indicate whether (Z) is a gain or a loss. (4 Marks) In your answer space write the letter and the amount only like the following example: (T) 50000 (U) 50000 Cash Item Sterling Pound () Exchange Rate U.S. Dollar ($) 200,000 (T) Inventory at market 300,000 (U) Land 2,300,000 (S) Total Assets Accounts Payable 800,000 (W) Equity 2000,000 (X) (Z) (Y) Total Liab. & Equity