On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Incorporated, 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, 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: Cash Accounts Receivable (net) Inventory Property, Plant and Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total Additional Information: Debits NKr 165,000 209,000 Credits 295,000 621,000 NKr 167,000 102,000 207,000 430,000 270,000 762,000 415,000 116,000 68,000 49,000 NKr 1,938,000 Nkr 1,938,000 1. 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. 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 evenly throughout 205. 4. The dividends were declared and paid on July 1, 20X5. 5. Pirate's Income from its own operations was $247,000 for 20X5, and its total stockholders' equity on January 1, 20X5, was $3,500,000. Pirate declared $170,000 of dividends during 20X5. 6. Exchange rates were as follows: July 1, 20x3 December 30, 20x4 January 1, 20X5 July 1, 20x5 Nkr 1 = $ 0.15 Nkr 1 = $ 0.18 Nkr 1 = $ 0.18 Nkr 1 = $ 0.19 December 15, 20X5 December 31, 20X5 Average for 20x5 Nkr 1 = $ 0.205 Nkr 1 = $ 0.21 Nkr 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. 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. c. Prepare a schedule that determines Pirate's consolidated net income for 20X5. d. Compute Pirate's total consolidated stockholders' eaulty at December 31. 20X5. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare a schedule remeasuring the trial balance from Norwegian kroner into U.S. dollars. Note: If no adjustment is needed, select 'No entry necessary'. Item Cash Accounts Receivable (net) Inventory Property, Plant, and Equipment Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total U.S. dollars $ 34,650 43,890 $ 78,540 Total Debits $ 78,540 Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Total $ 0 Total Credits $ Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list 1 Record the purchase of Ship Incorporated. 2 Record the dividend received from the foreign subsidiary. 3 Record the equity in the net income of the foreign subsidiary. 4 Record the amortization of the differential. journal entry has been entered Note : Record entry Clear entry Credit View general journal 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 20X5. 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 20X5. d. Compute Pirate's total consolidated stockholders' equity at December 31, 20X5. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare a schedule that determines Pirate's consolidated net income for 20X5. Note: Amounts to be deducted should be indicated with a minus sign. Income from Pirate's operations for 20X5, exclusive of income from the Norwegian subsidiary Add: income from the Norwegian subsidiary Deduct: Amortization of differential Consolidated net income for 20X5 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 20X5. 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 20X5. d. Compute Pirate's total consolidated stockholders' equity at December 31, 20X5. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute Pirate's total consolidated stockholders' equity at December 31, 20X5. Total consolidated stockholders' equity