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On January 1 , 2 0 X 5 , Pirate Company acquired all of the outstanding stock of Ship Incorporated, a Norwegian company, at a
On January X Pirate Company acquired all of the outstanding stock of Ship Incorporated, a Norwegian company, at a cost of tableRequired ARequired BRequired D
Prepare a schedule remeasuring the trial balance from Norwe
Note: If no adjustment is needed, select No entry necessary'
tableItemUS dollarsCashAccounts Receivable netInventoryProperty Plant, and Equipment,Cost of Goods Sold,times Operating Expenses,Depreciation Expense,Dividends Paid,TotalRemeasurement Loss,Total Debits,Accumulated Depreciation,Accounts Payable,Notes Payable,Common Stock,Retained Earnings,SalesTotalNo Entry Necessary,Total Credits, Required A
Required B
Required C
Required D
Assume that Pirate uses the fully adjusted equity method. Record all journal entries that relate to its investment in th Norwegian subsidiary during X Provide the necessary documentation and support for the amounts in the journal Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
tableNoDate,General Journal,Debit,CreditJanuary Investment in Ship Company,grad,Cash,grad,,July Cash,grad,Investment in Ship Company,grad,,December Investment in Ship Company,times Income from subsidiary,grad,,times December Income from subsidiary,grad,times Investment in Ship Company,times Required B
Required C
Required D
Prepare a schedule that determines Pirate's consolidated net income for X
Note: Amounts to be deducted should be indicated with a minus sign.Record the purchase of Ship Incorporated.
Record the dividend received from the foreign subsidiary.
Record the equity in the net income of the foreign
subsidiary.
Record the amortization of the differential.
$ Ship's net assets on the date of acquisition were kroner NKr On January X 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 $ The remaining useful life
of Ship's equipment at January X was years. The remainder of the differential was attributable to a patent having an
estimated useful life of years. Ship's trial balance on December X in kroner, follows:
Additional Information:
Ship uses the FIFO method for its inventory. The beginning inventory was acquired on December X and ending inventory
was acquired on December X Purchases of NKr were made evenly throughout X
Ship acquired all of its property, plant, and equipment on July X and uses straightline depreciation.
Ship's sales were made evenly throughout X and its operating expenses were incurred evenly throughout
The dividends were declared and paid on July
Pirate's income from its own operations was $ for and its total stockholders' equity on January was
$ Pirate declared $ of dividends during
Exchange rates were as follows:
Assume the US dollar is the functional currency, not the krone.
I NEED HELP FIXING THE INCORRECTINCOMPLETE SECTIONS IN THE PICTURES BELOW.
I ALSO NEED HELP WITH CALCULATING TOTAL CONSOLIDATED STOCKHOLDERS' EQUITY.
THANK YOU!
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