Remeasurement worksheet

Par of Chicago acquired all the outstanding capital stock of Sar of London on January 1, 2011, for $1,200,000. The exchange rate for British pounds was $1.60 and Sar’s stockholders’ equity was £800,000, consisting of £500,000 capital stock and £300,000 retained earnings. The functional currency of Sar is the U.S. dollar. Exchange rates for British pounds for 2011 are as follows:

Current rate December 31, 2010	$1.60
Current rate December 31, 2011	1.70
Average exchange rate for 2011	1.65
Exchange rate for dividends	1.64

Sar’s cost of goods sold consists of £200,000 inventory on hand at January 1, 2011, and purchases of £600,000 less £150,000 inventory on hand at December 31, 2011, that was acquired at an exchange rate of $1.68. All of Sar’s plant assets were on hand when Par acquired Sar, and Sar’s other expenses were paid in cash or relate to accounts payable. Sar’s adjusted trial balance at December 31, 2011, in British pounds is as follows:

Debits	Â
Cash	£ 50,000
Accounts receivable	200,000
Short-term note receivable	50,000
Inventories	150,000
Land	300,000
Buildings—net	400,000
Equipment—net	500,000
Cost of sales	650,000
Depreciation expense	200,000
Other expenses	400,000
Dividends	100,000
Â	£ 3,000,000
Credits	Â
Accounts payable	£ 180,000
Bonds payable—10%	500,000
Bond interest payable	20,000
Capital stock	500,000
Retained earnings	300,000
Sales	1,500,000
Â	£ 3,000,000

REQUIRED : Prepare a remeasurement worksheet to restate Sar’s adjusted trial balance at December 31, 2011, in U.S. dollars.