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

question 7

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 1,2014 in exchange for all of the subsidiary's common stock.Stripe has now ended its second year of operations on December 31,2015.Relevant exchange rates are:
January 01,2014 = 1£ = $1.60
April 01,2014 = 1£ = $1.62
December 31,2015 = 1£ = $1.57
2015 average rate = 1£ = $1.56
Stripe's adjusted trial balance is presented below for the calendar year 2015.
Required: Prepare Stripe's:
1.Remeasurement working papers;
2.Remeasured income statement;and
3.Remeasured balance sheet.

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Definitions:

Full-authority ECAT

Electronic Control Air Management Systems that have complete control over the engine's operations for optimized performance.

Allison WT

A model or series of automatic transmissions designed by Allison Transmission, commonly used in heavy-duty vehicles and equipment, known for durability and performance.

Planetary Gearset

A gearset consisting of three elements: a sun gear, planetary carrier (containing three or more planetary gears), and a ring gear (annulus). The three separate elements intermesh, and the hold/release status of each determines the output ratios. Also known as an epicyclic gearset.