On January 1, 20XB, 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 (). On January 1, 20X8, the book anc fair values of the Spin's identifiable assets and liabilities approximated their fair values except for property, plant, ar equipment and trademarks. The fair value of Spin's property, plant, and equipment exceeded its book value by $25,000. The remaining useful life of Soin'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: Debits Credits Cash Accounts Receivable (net) Inventory Property, Plant, and Equipment Accumulated Depreciation Accounts Payable 70,000 200,000 120,000 330,000 120,000 110,000 Notes Payable 90,000 Common Stock 100,000 Retained Earnings 150,000 Sales 420,000 Cost of Goods Sold 270,000 Operating Expenses 60,000 Depreciation Expense 30,000 Dividends Paid Total 10,000 $990,000 $990,000 Additional information 1. Spin uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 20X7, and ending inventory was acquired on December 26, 20XB. 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 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 20XB, was $1,000,000. Pace declared $50,000 of dividends during 20X8 6. Exchange rates were as follows: March 1, 20x6 January 1, 20x8 1-$1.20 December 31, 20x7 1-$1.25 1-$1.25 November 1, 20x8 1-$1.26 December 26, 20x8 1-$1.31 December 31, 20x8 2-$1.35 Average for 20x8 1-$1.30 ending Inventory was acquired on December 26, 20X8. Purchases of 300,000 were made evenly througho 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 througho 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: March 1, 20X6 16-$1.20 December 31, 20X7 1-$1.25 January 1, 20X8 1-$1.25 November 1, 20X8 1-$1.26 December 26, 20x8 1-$1.31 December 31, 20x8 1-$1.35 Average for 20x8 1-$1.30 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 liabilities at January 1, 20X8: Monetary Assets Cash 40,000 Accounts Receivable (net) 70,000 Monetary Liabilities Accounts Payable 105,000 Notes Payable 85,000 Essay Toolbar navigation BIVS