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I am needing help with part D. On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company,
I am needing help with part D.
On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $151,200. Ship's net assets on the date of acquisition were 700.000 kroner (NKr). On January 1, 20x5 the book and fair values of the Norwegian subsidiary's Identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and patents acquired. The fair value of Ship's property.plant, and equipment exceeded its book value by $18,000. The remaining useful life of Ship's equipment at January 1, 20x5, was 10 years. The remainder of the differential was attributable to a patent having an estimated useful life of 5 years. Ship's trial balance on December 31, 20X5, in kroner, follows: Credits Debits Nkr 150,eee 200,eee 27@.eee 600.000 Cash Accounts Receivable (net) Inventory Property, Plant and Equipment Accumulated Depreciation Accounts Payable Notes Payable Connon Stock Retained Earnings Sales Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total Nkr 150,eee 90, eee 198,eee 45e,eee 25e,eee 690,eee 410.ece 188,eee 50.000 40.600 Nr1,820.000 Nkr1,828,eee 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, 20X5. Purchases of NK1420,000 were made evenly throughout 20x5. 2 Ship acquired all of its property, plant, and equipment on July 1, 20X3, and uses straight-line 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 $275.000 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: July 1, 20x3 December 30, 20x4 January 1, 20x5 July 1, 2exs December 15, 2exs December 31, 2exs Average for 2exs NKT $ 1 = 0.15 1 = 0.18 1 = 0.18 1 = 0.19 1 = 0.205 1 = 0.21 1 = 0.20 d. Compute Pirate's total consolidated stockholders' equity at December 31, 20X5. Answer is complete but not entirely correct. Consolidated stockholders' equity $ 3.748,440 XStep by Step Solution
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