On January 1, 20X5, Taft Company acquired all of the outstanding stock of Vikix, Inc., a Norwegian company, at a cost of $162,000. Vikixs 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 Vikixs property, plant, and equipment exceeded its book value by $18,000. The remaining useful life of Vikixs 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. Vikixs trial balance on December 31, 20X5, in kroner, follows:

	Debits			Credits
Cash	NKr	157,000
Accounts Receivable (net)		217,000
Inventory		284,000
Property, Plant & Equipment		622,000
Accumulated Depreciation				NKr	168,000
Accounts Payable					110,000
Notes Payable					208,000
Common Stock					460,000
Retained Earnings					240,000
Sales					753,000
Cost of Goods Sold		420,000
Operating Expenses		122,000
Depreciation Expense		69,000
Dividends Paid		48,000
Total	NKr	1,939,000		NKr	1,939,000

Additional Information:

1.	Vikix 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.
2.	Vikix acquired all of its property, plant, and equipment on July 1, 20X3, and uses straight-line depreciation.
3.	Vikixs 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.	Tafts income from its own operations was $233,000 for 20X5, and its total stockholders equity on January 1, 20X5, was $3,500,000. Taft declared $160,000 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

b.Assume that Taft 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, including a schedule of the translation adjustment related to the differential. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Dec. 31st

Income from Subsidiary ???

Investment in Vikix Company ???

Dec 31st

Investment in Vikix Company ???

Other Comprehensive Income - Translation Adjustment ???

c.Prepare a schedule that determines Tafts consolidated comprehensive income for 20X5. (Amounts to be deducted should be indicated with a minus sign.)

Income from Taft's Operations for 20X5, exclusive of income from the Norwegian subsidiary	$233,000
Add: Income from Norwegian subsidiary	28,400
Deduct: Amortization of differential	???
Taft's Net Income
Add: Translation adjustment	???
Taft's Consolidated Comprehensive Income d.Compute Tafts total consolidated stockholders equity at December 31, 20X5. Consolidated Stockholder's Equity = ???