On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $152,100. Ships net assets on the date of acquisition were 800,000 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 $19,100. 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	200,000
Accounts Receivable (net)		310,000
Inventory		350,000
Property, Plant, & Equipment		710,000
Accumulated Depreciation				NKr	200,000
Accounts Payable					90,000
Notes Payable					402,000
Common Stock					500,000
Retained Earnings					300,000
Sales					800,000
Cost of Goods Sold		400,000
Operating Expenses		210,000
Depreciation Expense		61,000
Dividends Paid		51,000
Total	NKr	2,292,000		NKr	2,292,000

Additional Information:

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 NKr410,000 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. Ships sales were made evenly throughout 20X5, and its operating expenses were incurred evenly throughout 20X5.
4. The dividends were declared and paid on July 1, 20X5.
5. Pirates income from its own operations was $280,000 for 20X5, and its total stockholders equity on January 1, 20X5, was $4,000,000. Pirate declared $210,000 of dividends during 20X5.
6. 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: Prepare a schedule providing a proof of the remeasurement gain or loss. For this part of the problem, assume that the Norwegian subsidiary had the following monetary assets and liabilities at January 1, 20X5:

Monetary Assets
Cash	NKr	21,000
Accounts Receivable (net)		250,000

Monetary Liabilities
Accounts Payable	NKr	135,000
Notes Payable		250,000

On January 1, 20X5, the Norwegian subsidiary has a net monetary liability position of NKr114,000. (Amounts to be deducted should be indicated with a minus sign.)