On January $1,20$X$5,$ Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $$167,400.$ Ship$$s net assets on the date of acquisition were $700,000$ kroner $($NKr$).$ On January $1,20$X$5,$ 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 $1,20$X$5,$ 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 $31,20$X$5,$ in kroner, follows:

Debits Credits

Cash NKr $163,000$

Accounts Receivable $($net$)223,000$

Inventory $279,000$

Property, Plant & Equipment $603,000$

Accumulated Depreciation NKr $160,000$

Accounts Payable $98,000$

Notes Payable $206,000$

Common Stock $440,000$

Retained Earnings $260,000$

Sales $746,000$

Cost of Goods Sold $424,000$

Operating Expenses $121,000$

Depreciation Expense $57,000$

Dividends Paid $40,000$

Total NKr $1,910,000$ NKr $1,910,000$

Additional Information:

Ship uses the FIFO method for its inventory. The beginning inventory was acquired on December $31,20$X$4,$ and ending inventory was acquired on December $15,20$X$5.$ Purchases of NKr$430,000$ were made evenly throughout $20$X$5.$

Ship acquired all of its property, plant, and equipment on July $1,20$X$3,$ and uses straight$-$line depreciation.

Ship$$s sales were made evenly throughout $20$X$5,$ and its operating expenses were incurred evenly throughout $20$X$5.$

The dividends were declared and paid on July $1,20$X$5.$

Pirate$$s income from its own operations was $$243,000$ for $20$X$5,$ and its total stockholders$$ equity on January $1,20$X$5,$ was $$3,600,000.$ Pirate declared $$190,000$ of dividends during $20$X$5.$

Exchange rates were as follows:

NKr $

July $1,20$X$31=0\mathrm{.}15$

December $30,20$X$41=0\mathrm{.}18$

January $1,20$X$51=0\mathrm{.}18$

July $1,20$X$51=0\mathrm{.}19$

December $15,20$X$51=0\mathrm{.}205$

December $31,20$X$51=0\mathrm{.}21$

Average for $20$X$51=0\mathrm{.}20\backslash$table$[[$July $1,203,1,=0\mathrm{.}15$b$.$ Assume that Pirate uses the fully adjusted equity method. Record all journal entries that relate to its investment in the Norwegiar

subsidiary during $205.$ Provide the necessary documentation and support for the amounts in the journal entries, including a sche

of the translation adjustment related to the differential. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry

required" in the first account field.$)$

Answer is complete but not entirely correct.