Petra Corporation, a U.S. firm, acquired all the outstanding capital stock of Sitra Corporation, a British firm, on January 1, 2016 for $800,000 when the exchange rate for the British pounds was $1.50 and Sitra's stockholders' equity consisted of 400,000 capital stock and 100,000 retained earnings.Sitra's functional currency is the British pound.

The balance sheet accounts for Sitra at January 1, 2016 in British pounds and U.S. dollars are summarized as follows