Note to Instructor: This Exam Item Is a Continuation of Exercise

question 13

Essay

Note to Instructor: This exam item is a continuation of Exercise 5 and proceeds forward with Stripe's second year of operations.
Stripe Corporation,a British subsidiary of Polka Corporation (a U.S.company)was formed by Polka on January 1,2011 in exchange for all of the subsidiary's common stock.Stripe has now ended its second year of operations on December 31,2012.Relevant exchange rates are:
January 01,2011 = 1£ = $1.60
April 01,2011 = 1£ = $1.62
December 31,2012 = 1£ = $1.57
2012 average rate = 1£ = $1.56
Stripe's adjusted trial balance is presented below for the calendar year 2012.
Required: Prepare Stripe's:
1.Remeasurement working papers;
2.Remeasured income statement;and
3.Remeasured balance sheet.

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Definitions:

Personal Virtue

The quality of moral excellence, righteousness, and responsibility that is an aspect of one's character.

Moral Impulse

The human instinct to behave morally.

Absolutism

A political doctrine and form of government where unlimited, complete power is held by a single individual, often a monarch or dictator, or a centralized authority.

Ethical Decisions

Choices based on moral principles and values, often considering the well-being of others and the broader society.