On January $1,20$X$5,$ Pirate Company acquired all of the outstanding stock of Ship Incorporated, a Norwegian company, at a cost of $$151,200.$ Ship's net assets on the date of acquisition were $700,000$kroner$(NKr).$ On January $1,205,$ the book and fair values of the Norwegian subsidiary's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and patents acquired. The fair value of Ship's property, plant, and equipment exceeded its book value by $$18,000.$ The remaining useful life of Ship's equipment at January $1,205,$ 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:

$\backslash$table$[[,$Debits,Credits$],[$Cash$,NKr156,000,],[$Accounts Receivable $($net$),211,000,],[$Inventory$,300,000,],[$Property$,$ Plant and Equipment,$611,000,],[$Accumulated Depreciation,,$NKr157,000$On January $1,20$X$5,$ Pirate Company acquired all of the outstanding stock of Ship Incorporated, a Norwegian company, at a cost of $$151,200.$ Ship's net assets on the date of acquisition were $700,000$ kroner $(NKr.$ On January $1,205,$ the book and fair values of the Norwegian subsidiary's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and patents acquired. The fair value of Ship's property, plant, and equipment exceeded its book value by $$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:

$\backslash$table$[[,,$Debits,Credits$],[$Cash$,,NKr156,000,],[$Accounts Receivable $($net$),.,211,000,],[$Inventory$,,300,000,],[$Property$,$ Plant and Equipment,,$611,000,],[$Accumulated Depreciation,,,$NKr157,000$

The dividends were declared and paid on July $1,205.$

Pirate's income from its own operations was $$268,000$ for $205,$ and its total stockholders' equity on January $1,205,$ was $$3,500,000.$ Pirate declared $$120,000$ of dividends during $205.$

Exchange rates were as follows:

July $1,20x3$

December $30,204$

January $1,20$X$5$

July $1,205$

December $15,20$X$5$

December $31,20$X$5$

Average for $20$X$5$

$NKr1=$$$0\mathrm{.}15$

$NKr1=$$$0\mathrm{.}18$

$NKr1=$$$0\mathrm{.}18$

$NKr1=$$$0\mathrm{.}19$

$NKr1=$$$0\mathrm{.}205$

$NKr1=$$$0\mathrm{.}21$

$NKr1=$$$0\mathrm{.}20$

$NKr1=$$$0\mathrm{.}15$

$NKr1=$$$0\mathrm{.}18$

$NKr1=$$$0\mathrm{.}18$

$NKr1=$$$0\mathrm{.}19$

$NKr1=$$$0\mathrm{.}205$

$NKr1=$$$0\mathrm{.}21$

$NKr1=$$$0\mathrm{.}20$

Assume the U$.$S$.$ dollar is the functional currency, not the krone.

Required:

a$.$ Prepare a schedule remeasuring the trial balance from Norwegian kroner into U$.$S$.$ dollars.

b$.$ Assume that Pirate uses the fully adjusted equity method. Record all journal entries that relate to its investment in the Norwegian subsidiary during $20$X$5.$ Provide the necessary documentation and support for the amounts in the journal entries.

c$.$ Prepare a schedule that determines Pirate's consolidated net income for $205.$

d$.$ Compute Pirate's total consolidated stockholders' equity at December $31,205.$