On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $153,000. 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: Debits Credits Cash NKr 155,000 Accounts Receivable (net) 209,000 Inventory 296,000 Property, Plant & Equipment 624,000 Accumulated Depreciation NKr 154,000 Accounts Payable 97,000 Notes Payable 207,000 Common Stock 420,000 Retained Earnings 280,000 Sales 762,000 Cost of Goods Sold 416,000 Operating Expenses 111,000 Depreciation Expense 61,000 Dividends Paid 48,000 Total NKr 1,920,000 NKr 1,920,000 Additional Information: 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 NKr420,000 were made evenly throughout 20X5. Ship acquired all of its property, plant, and equipment on July 1, 20X3, and uses straight-line depreciation. Ships sales were made evenly throughout 20X5, and its operating expenses were incurred evenly throughout 20X5. The dividends were declared and paid on July 1, 20X5. Pirate's income from its own operations was $227,000 for 20X5, and its total stockholders' equity on January 1, 20X5, was $3,600,000. Pirate declared $190,000 of dividends during 20X5. Exchange rates were as follows: NKr $ July 1, 20X3 1 = 0.15 December 30, 20X4 1 = 0.18 January 1, 20X5 1 = 0.18 July 1, 20X5 1 = 0.19 December 15, 20X5 1 = 0.205 December 31, 20X5 1 = 0.21 Average for 20X5 1 = 0.20 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. (If no adjustment is needed, select 'no entry necessary'.) b. Assume that Pirate uses the fully adjusted equity method. Record all journal entries that relate to its investment in the Norwegian subsidiary during 20X5. Provide the necessary documentation and support for the amounts in the journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) c. Prepare a schedule that determines Pirate's consolidated net income for 20X5..(Amounts to be deducted should be indicated with a minus sign.) d. Compute Pirate's total consolidated stockholders' equity at December 31, 20X5.