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balance on December 31, 20 X 8, in pounds, follows: Required: Prepare a schedule providing a proof of the translation adjustment.

balance on December 31, 20 X 8, in pounds, follows: Required: Prepare a schedule providing a proof of the translation adjustment.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 (f). On January 1, 20X8, the book and fair values of the Spin's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and tradenarks. The fair value of Spin's property, plant, and equipment exceeded its book value by $ 25,000. The remaining useful life of Spin'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 31,20 X 8, in pounds, follows: Required: Prepare a schedule providing a proof of the translation adjustment.
Transcribed Image Text: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 (f). On January 1, 20X8, the book and fair values of the Spin's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and tradenarks. The fair value of Spin's property, plant, and equipment exceeded its book value by $ 25,000. The remaining useful life of Spin'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 31,20 X 8, in pounds, follows: Required: Prepare a schedule providing a proof of the translation adjustment.
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