On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $163,800. Ship's net assets on the date of acquisition were 710,000 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: Debits Credit Cash Accounts Receivable (net) Inventory Property, Plant&Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total NKr 152,000 220,000 286,000 613,000 NKr 166,100 99,000 192,000 440,000 270,000 740,900 420,500 112,000 53,000 51,500 NKr1,908,000 NKr1,908,000 Additional Information: uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 20X4, and ending invent inventory was acquired on December 15, 20X5. Purchases of NK 430,000 were made evenly throughoand 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 4. The dividends were declared and paid on July 1, 20X5 evenly throughout 20x5 from its own operations was $255,000 for 20x5, and its total stockholders' equity on January 1, 20X5, was $3,600,000. Pirate declared $180,000 of dividends during 20X5 6. Exchange rates were as follows