On January $1,20$X$8,$ 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 trademarks. 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 $1,20$X$8,$ 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 $31,20x8,$ in pounds, follows:

The dividends were declared and paid on November $1,20$X$8.$

Exchange rates were as follows:

January $1,20x8$

November $1,208$

December $31,208$

Average for $208$

$1$hat$(f)=$$$1\mathrm{.}25$

$1$hat$(f)=$$$1\mathrm{.}26$

$1$hat$(f)=$$$1\mathrm{.}35$

$1$hat$(f)=$$$1\mathrm{.}30$

Required: Prepare a schedule providing a proof of the translation adjustment.