D ni January 1, 20x6, the backk end eir yaluas of e dale uf acqistion weie 700,ar kmner (Nk property, plant, and oquipmenl and patonts acuuired Tha fair vidue of Ship' nocarty nlant and aquinmal ayrcadad romaindes of tthe diore dribdabin to a oierid bavioa auedinualed usefu tre of yr anco 5 yonrs, Ship's Iril Ducember 31, 20X5, in kroner, folows: Debls Credils NKC Accounls Reaewabla (an) Prencdy Pl& Cuuiomant 828 Cor cud precialion NKr P 210,uu0 neEatnirg Coat of oos Sod naniion Expenae 200000 474.501 124,000 nds Pald Taia 49,50 NKr,9300 NKr1936 Qu Additional Infarmation: enduu inveatory was acouired Decomiar 15. 205 Purebasas of NE43000wora mede wxily threughrut Ship acquirod all of its ropely, planl, and equionent on Juy ,20x3, and uses slraight-los - Ship's salns were mede everly throughout 20X5, and ts oparang exensos were Inoureel uvanty throughout 20x6 . Plale's income from s own paeratinns was $257,000 far 200x5, end ils ttal soakholders'equily January" k,u, Piralo declared $103,000 of dividenls duninn 21x4 July 1, 20x3 20X samber 0, 2L 1 - 0.1 July 1, 2 December 31,20xs Awerage Sor 20xs Required: weth a minus sian ding a proof ol the iranslation ediusiment. [Amounts te be dedactod shoutd be indicated yco19 Ascigument Pr Vaw Narvegiah Exchanga Rale .5 Dollans Nel assals at baglning ef year Adustmente for changas in net eusels posilioni during 20XS Net incom nds uaid Nel easals translated a Rales during yuar Rales at and of vear iner camprohensln ircome-translalian Accumaied olher conprehensive income- anslaion ienareharalve ecoe-translatinn adjustmant nocamber 31 (arodit On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost. of $162,000. Ship's net assets on the date of acquisition were 700,000 kroner (NKr). On January 1, 20X5, the fair values of the Norwegian subsidiary's identifable assets and iabites approximated their fair values exce eede property, plant, and equipment and patents acquired. The fair yalue of Ship's propeny t0ars The its book value by $18,000. The remaining useful life of Ship's equipment at Jan remainder of the dfferential was atributable to a patent having an estimated useful life of 5 years. Ship's trial balance on December 31, 20x5, in kroner, follows: and Credits Debits NKr 164.000 202.000 283.000 628.000 Cash Accounts Receivable (net) Inventory Property, Plant & Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Eamings NKr 154,100 101.000 210,000 220 00 709.900 Sales Cost of Goods Sold Operating Expenses Depreclation Expense Dividends Paid 424.500 122 000 62.000 49.500 NKr1,935,000 NKr1,935,000 Total Additional Information: 1. Ship uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 20X4, and ending inventory was acquired on December 15, 200x5, Purchases of NKr430,000 were made evenly throughout 20X5 2. Ship acquired all of its property, plant, and equipment on July 1, 20X3, and uses straight-ine depreciation. 3 Ship's sales were made evenly throughout 20X5, and its operating expenses were incurred evenly throughout 20X5. 4, The dividends were declared and paid on July 1, 20X5. 5. Pirate's income from its own operations was $257.000 for 20x5, and its total stockholders' equity on January 1, 20X5, was $3,500,000. Pirate declared $100,000 of dividends during 20X5. 6 Exchange rates were as follows: Nkr July 1, 20X3 December 30, 20x4 January 1, 20X5 July 1, 20x5 December 15, 20x5 December 31, 20X5 Average for 20x5 1 . 0.15 1 a 0.18 0.18 0.19 0.205 0.21 0.20 1 . 1 - 1 1 1 - Required: Prepare a schedule providing a proof of the translation adjustment. (Amounts to be deducted should be indicated with a minus sign.) Assignment Print View 7/2/2019 Exchange Rate Norwegian Kroner U.S. Dollars NKr Net assets at beginning of year Adjustments for changes in net assets position during 20XS Net income Less: Dividends paid Net assets translated at: 0 Rates during year NKr 0 Rates at end of year Change in other comprehensive income-translation adjustment during year Accumulated other comprehensive income- translation adjustment-January 1 Accumulated other comprehensive income- translation adjustment- Dece 1 (credit) D ni January 1, 20x6, the backk end eir yaluas of e dale uf acqistion weie 700,ar kmner (Nk property, plant, and oquipmenl and patonts acuuired Tha fair vidue of Ship' nocarty nlant and aquinmal ayrcadad romaindes of tthe diore dribdabin to a oierid bavioa auedinualed usefu tre of yr anco 5 yonrs, Ship's Iril Ducember 31, 20X5, in kroner, folows: Debls Credils NKC Accounls Reaewabla (an) Prencdy Pl& Cuuiomant 828 Cor cud precialion NKr P 210,uu0 neEatnirg Coat of oos Sod naniion Expenae 200000 474.501 124,000 nds Pald Taia 49,50 NKr,9300 NKr1936 Qu Additional Infarmation: enduu inveatory was acouired Decomiar 15. 205 Purebasas of NE43000wora mede wxily threughrut Ship acquirod all of its ropely, planl, and equionent on Juy ,20x3, and uses slraight-los - Ship's salns were mede everly throughout 20X5, and ts oparang exensos were Inoureel uvanty throughout 20x6 . Plale's income from s own paeratinns was $257,000 far 200x5, end ils ttal soakholders'equily January" k,u, Piralo declared $103,000 of dividenls duninn 21x4 July 1, 20x3 20X samber 0, 2L 1 - 0.1 July 1, 2 December 31,20xs Awerage Sor 20xs Required: weth a minus sian ding a proof ol the iranslation ediusiment. [Amounts te be dedactod shoutd be indicated yco19 Ascigument Pr Vaw Narvegiah Exchanga Rale .5 Dollans Nel assals at baglning ef year Adustmente for changas in net eusels posilioni during 20XS Net incom nds uaid Nel easals translated a Rales during yuar Rales at and of vear iner camprohensln ircome-translalian Accumaied olher conprehensive income- anslaion ienareharalve ecoe-translatinn adjustmant nocamber 31 (arodit On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost. of $162,000. Ship's net assets on the date of acquisition were 700,000 kroner (NKr). On January 1, 20X5, the fair values of the Norwegian subsidiary's identifable assets and iabites approximated their fair values exce eede property, plant, and equipment and patents acquired. The fair yalue of Ship's propeny t0ars The its book value by $18,000. The remaining useful life of Ship's equipment at Jan remainder of the dfferential was atributable to a patent having an estimated useful life of 5 years. Ship's trial balance on December 31, 20x5, in kroner, follows: and Credits Debits NKr 164.000 202.000 283.000 628.000 Cash Accounts Receivable (net) Inventory Property, Plant & Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Eamings NKr 154,100 101.000 210,000 220 00 709.900 Sales Cost of Goods Sold Operating Expenses Depreclation Expense Dividends Paid 424.500 122 000 62.000 49.500 NKr1,935,000 NKr1,935,000 Total Additional Information: 1. Ship uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 20X4, and ending inventory was acquired on December 15, 200x5, Purchases of NKr430,000 were made evenly throughout 20X5 2. Ship acquired all of its property, plant, and equipment on July 1, 20X3, and uses straight-ine depreciation. 3 Ship's sales were made evenly throughout 20X5, and its operating expenses were incurred evenly throughout 20X5. 4, The dividends were declared and paid on July 1, 20X5. 5. Pirate's income from its own operations was $257.000 for 20x5, and its total stockholders' equity on January 1, 20X5, was $3,500,000. Pirate declared $100,000 of dividends during 20X5. 6 Exchange rates were as follows: Nkr July 1, 20X3 December 30, 20x4 January 1, 20X5 July 1, 20x5 December 15, 20x5 December 31, 20X5 Average for 20x5 1 . 0.15 1 a 0.18 0.18 0.19 0.205 0.21 0.20 1 . 1 - 1 1 1 - Required: Prepare a schedule providing a proof of the translation adjustment. (Amounts to be deducted should be indicated with a minus sign.) Assignment Print View 7/2/2019 Exchange Rate Norwegian Kroner U.S. Dollars NKr Net assets at beginning of year Adjustments for changes in net assets position during 20XS Net income Less: Dividends paid Net assets translated at: 0 Rates during year NKr 0 Rates at end of year Change in other comprehensive income-translation adjustment during year Accumulated other comprehensive income- translation adjustment-January 1 Accumulated other comprehensive income- translation adjustment- Dece 1 (credit)