pany, for $350.00ompany acquired all of the outstanding stock of Sat PLC, a British January 1, 2008, the book and fair values of the Sat's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment an Sat's net assets on s net assets on the date of acquisition were 250,000 pounds (). On d trademarks. The fair s property, plant, and equipment exceeded its book value by $25,000. The remaining e of Sat's equipment at January 1, 2008, was 10 years. The remainder of the differential useful lif was attributa December 31, 2008, in pounds, follows: ble to a trademark having an estimated useful life of 5 years. Sat's trial balance on N 250,oto S Credits 25000fferent oe Debits 70,000 100,000 120,000 330,000 Cash Accounts Receivable (net) Inventory Property, Plant, and Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total 120,000 110,000 90,000 100,000 150,000 420,000 270,000 60,000 30,000 10,000 990,000 990,000 Additional Information 1. Sat uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 2007, and ending inventory was acquired on December 26, 2008. Purchases of 300,000 were made evenly throughout 2008. depreciation. evenly throughout 2008. 2. Sat acquired all of its property, plant, and equipment on March 1, 2006, and uses straight-line 3. Sat's sales were made evenly throughout 2008, and its operating expenses were incurred 4. The dividends were declared and paid on November 1,2008. 5. Pat's income from its own operations was $150,000 for 2008, and its total stockholders' equity on January 1, 2008, was $1,000,000. Pat declared S50,000 of dividends during 2008. 6. Exchange rates were as follows