P 14-6 Remeasurement worksheet Phi, a U.S. fim, acquired 100 percent of Stu's outstanding stock at book value on January 1, 2011, for $112,000. Stu is a New Zealand-based company, and its functional currency is the U.S. dollar. The exchange rate for New Zealand dollars (NZS) was $0.70 when Phi acquired its interest. Stu's stockholders' equity on January 1, 2011, consisted of NZ$150,000 capital stock and NZS10,000 retained camnings. The adjusted trial balance for Stu at December 31, 2011, is as follows: Debits Cash NZ $15,000 Accounts receivablenet 60,000 Inventories 30,000 Prepaid expenses 10,000 Land 45,000 Equipment 60,000 Cost of sales 120,000 Depreciation expense 12,000 Other operating expenses 28,000 Dividends 20,000 NZ $400,000 Credits Accumulated depreciation NZS22,000 Accounts payable 18,000 Capital stock 150,000 Retained earnings 10,000 Sales 200.000 NZ$400,000 Additional Information 1. Prepaid expenses (supplies) of NZ$18,000 were on hand when Phi acquired Stu. Other operating expenses include NZ$8,000 of these supplies that were used in 2011. The remaining NZS 10,000 of supplies is on hand at year-end. 2. The NZS120,000 cost of sales consists of NZ$50,000 inventory on hand at January 1, 2011, and NZS 100,000 in purchases during the year, less NZ$30,000 ending inventory that was acquired when the exchange rate was $0.66. 3. The NZ$60,000 of equipment consists of NZ$50,000 included in the business combination and NZS10,000 purchased during 2011, when the exchange rate was 80.68. A depreciation rate of 20 percent is applicable to all equipment for 2011. 4. Exchange rates for 2011 are summarized as follows: Current exchange rate, January 1, 2011 $0.70 Exchange rate when new equipment was acquired 0.68 Average exchange rate for 2011 0.67 Exchange rate for December 31, 2011, inventory 0.66 Exchange rate for dividends 0.66 Current exchange rate, December 31, 2011 0.65 Required: Prepare a worksheet to remcasure the adjusted trial balance of Stu Corporation into U.S. dollars at December 31, 2011