On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Incorporated, a Norwegian company, at a cost of $153,000. Ships net assets on the date of acquisition were 700,000 kroner (NKr). On January 1, 20X5, the book and fair values of the Norwegian subsidiarys identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and patents acquired. The fair value of Ships property, plant, and equipment exceeded its book value by $18,000. The remaining useful life of Ships 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. Ships trial balance on December 31, 20X5, in kroner, follows: Debits Credits Cash NKr 153,000 Accounts Receivable (net) 229,000 Inventory 278,000 Property, Plant and Equipment 614,000 Accumulated Depreciation NKr 163,000 Accounts Payable 106,000 Notes Payable 207,000 Common Stock 440,000 Retained Earnings 260,000 Sales 746,000 Cost of Goods Sold 419,000 Operating Expenses 122,000 Depreciation Expense 53,000 Dividends Paid 54,000 Total NKr 1,922,000 NKr 1,922,000 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 NKr430,000 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. Pirates income from its own operations was $272,000 for 20X5, and its total stockholders equity on January 1, 20X5, was $3,500,000. Pirate declared $150,000 of dividends during 20X5. Exchange rates were as follows: July 1, 20X3 NKr 1 = $ 0.15 December 30, 20X4 NKr 1 = $ 0.18 January 1, 20X5 NKr 1 = $ 0.18 July 1, 20X5 NKr 1 = $ 0.19 December 15, 20X5 NKr 1 = $ 0.205 December 31, 20X5 NKr 1 = $ 0.21 Average for 20X5 NKr 1 = $ 0.20 Assume the U.S. dollar is the functional currency, not the krone. Required: Prepare a schedule remeasuring the trial balance from Norwegian kroner into U.S. dollars. 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. Prepare a schedule that determines Pirate's consolidated net income for 20X5. Compute Pirate's total consolidated stockholders' equity at December 31, 20X5.