On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $169,200. Ship's net assets on the date of acquisition were 780.000 kroner (NK). 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, 2005, 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 NKT 156,000 Accounts Receivable 205,000 (net) Inventory 298,000 Property, Plant & 619,000 Equipment Accumulated NKr Depreciation 151,100 Accounts Payable 104,000 Notes Payable 207,000 Common Stock 440,000 Retained Earnings 340,000 Sales 680,900 Cost of Goods Sold 417,500 Operating Expenses 111,000 Depreciation Expense 64,000 Dividends Paid 52,500 Total Nkr 1,923,000 Nkr1,923,000 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 NK 420,000 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 20X5. 4. The dividends were declared and paid on July 1, 20X5. 5. Pirate's 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 $170,000 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 l = 0.20 Required: Prepare a schedule providing a proof of the translation adjustment. (Amounts to be deducted should be indicated with a minus sign.)