On January 1,205, Pirate Company acquired all of the outstanding stock of Ship Incorporated, a Norwegian company, at a cost of $154,800. Ship's net assets on the date of acquisition were 700,000 kroner (NKr). On January 1,205, 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 1,205, 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 31,205, in kroner, follows: 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 15,205. Purchases of NKr430,000 were made evenly throughout 205. 2. Ship acquired all of its property, plant, and equipment on July 1,203, and uses straight-line depreciation. Additional Information: 1. Ship uses the FIFO method for its inventory. The beginning inventory was acquired on December 31,204, and ending inventory was acquired on December 15,205. Purchases of NKr430,000 were made evenly throughout 205. 2. Ship acquired all of its property, plant, and equipment on July 1,203, and uses straight-line depreciation. 3. Ship's sales were made evenly throughout 205, and its operating expenses were incurred evenly throughout 205. 4. The dividends were declared and paid on July 1,205. 5. Pirate's income from its own operations was $238,000 for 205, and its total stockholders' equity on January 1,205, was $3,600,000. Pirate declared $160,000 of dividends during 205. 6. Exchange rates were as follows: 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 205. 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 205. d. Compute Pirate's total consolidated stockholders' equity at December 31,205. Journal entry worksheet Record the purchase of Ship Incorporated. Note: Enter debits before credits. On January 1,205, Pirate Company acquired all of the outstanding stock of Ship Incorporated, a Norwegian company, at a cost of $154,800. Ship's net assets on the date of acquisition were 700,000 kroner (NKr). On January 1,205, 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 1,205, 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 31,205, in kroner, follows: 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 15,205. Purchases of NKr430,000 were made evenly throughout 205. 2. Ship acquired all of its property, plant, and equipment on July 1,203, and uses straight-line depreciation. Additional Information: 1. Ship uses the FIFO method for its inventory. The beginning inventory was acquired on December 31,204, and ending inventory was acquired on December 15,205. Purchases of NKr430,000 were made evenly throughout 205. 2. Ship acquired all of its property, plant, and equipment on July 1,203, and uses straight-line depreciation. 3. Ship's sales were made evenly throughout 205, and its operating expenses were incurred evenly throughout 205. 4. The dividends were declared and paid on July 1,205. 5. Pirate's income from its own operations was $238,000 for 205, and its total stockholders' equity on January 1,205, was $3,600,000. Pirate declared $160,000 of dividends during 205. 6. Exchange rates were as follows: 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 205. 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 205. d. Compute Pirate's total consolidated stockholders' equity at December 31,205. Journal entry worksheet Record the purchase of Ship Incorporated. Note: Enter debits before credits