On January 1, 2018, Pine Company acquired Spin PLC, a British subsidiary, by purchasing all its common stock at book value.

Additional Information

1.

Spin uses the FIFO method for its inventory. The beginning

inventory was acquired on December 31, 2017, and

ending inventory was acquired on December 26, 2018.

Purchases of 300,000 were made evenly throughout 2018.

2.

Building and equipment were acquired as follows:

Date

Cost

January 1, 2016

100,000

December 31, 2017

130,000

July 1, 2018

100,000

Building and equipment are depreciated using

straight-line method and a 10-year life, with no salvage

value.

3.

Spin's sales were made evenly throughout 2018, and its

operating expenses were incurred evenly throughout 2018.

4.

Dividends of 5,000 were declared and paid on July 1, 2018

and on November 1, 2018.

Exchange Rates Table

January 1, 2016

1

$1.20

December 31, 2017

1

$1.25

January 1, 2018

1

$1.25

July 1, 2018

1

$1.26

November 1, 2018

1

$1.27

December 26, 2018

1

$1.31

December 31, 2018

1

$1.35

Average for 2018

1

$1.30

Assume the U.S. dollar is the functional currency.

Spin Company

Trial Balance

December 31, 2018

Item

Pounds

Cash

72,000

Accounts receivable (net)

50,000

Marketable securities

50,000

Inventory

120,000

Building & equipment

330,000

Cost of goods sold

270,000

Operating expenses

60,000

Depreciation expense

28,000

Dividends paid

10,000

Total

990,000

Accumulated depreciation

48,000

Accounts payable

182,000

Notes payable

90,000

Common stock

100,000

Retained earnings

150,000

Sales

420,000

Total

990,000

What is the appropriate rate for restating marketable securities?