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On January 1, 20X8, Pace Company acquired all of the outstanding stock of Spin PLC, a British Company, for $350,000. Spin's net assets on the

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On January 1, 20X8, Pace Company acquired all of the outstanding stock of Spin PLC, a British Company, for $350,000. Spin's net assets on the date of acquisition were 250,000 pounds ( E ). On January 1,20X8, the book and fair values of the Spin's identifiable assets and liabilities approximated their fair values except for equipment. The remaining useful life of Spin's equipment at January 1 , 208, was 10 years. During 20X8, Spin eamed 60,000 pounds in income and declared and paid 10,000 pounds in dividends, The dividends were declared and paid in pounds on November 1,20x8. Pace's income from its own operations was $150,000 for 208. Pace's total stockholders' equity on January 1, 20X8 was $1,000,000, It declared $50,000 of dividend5 during 20X8. Assume Pace uses the fully adjusted equity method to account for its Investment in Spin. Management has determined that the pound is Spin's appropriate functional currency. Relevant exchange rates were as follows: Answer the following questions: (Do not add dollar sign: do not add commo to your amount; round the answer to the whole number) - Calculate the translation adjustment from this subsidiary for 20x8. Be sure to indicate whether it is a debit or credit balance. (Hint: use proof of tronslation adjustment method) - What amount should Pace record as income from Spin on its book? - What is the balance of investment in Spin account reported on Paces hook on December 31,20X8 before consolidation? Answer the following questions: (Do not add dollar sign; do not add comma to your amount; round the onswer to the whole number) - Calculate the translation adjustment from this subsidiary for 20X8. Be sure to indicate whether it is a debit or credit balance. (Hint: use proof of translation adjustment method) - What amount should Pace record as income from Spin on its book? 1. What is the balance of investment in Spin account reported on Pace's book on December 31, 20X8 before consolidation? - Determine the amount of Pace's consolidated net income for 208. - Determine the amount of Pace's consolidated comprehenslve income for 208. - Compute Pace's total consolidated stockhoiders equily at December 31, 208

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