Stmts-Graded HW Seved On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $165,600. Ship's net assets on the date of acquisition were 740,000 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, 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: Debits Credits Cash Accounts Receivable (net) Inventory Property, Plant & Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total Nr 154,000 201,000 290,000 602,000 NKr 153,100 100,000 192,000 420,000 320,000 690,900 418,500 124,000 53,000 41,500 NK 1,804,000 NKP1,884,000 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 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 20X5 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 $110,000 of dividends during 20X5 6. Exchange rates were as follows July 1, 2013 December 30, 20 January 1, 2015 July 1, 2015 December 15, 2005 December 31, 285 Average for 2015 Required: Ner 10.15 1- 0.18 10.18 10.19 1- 0.205 10.21 0.20 Prepare a schedule providing a proof of the translation adjustment. (Amounts to be deducted should be indicated with a minus sign.) Norwegian Exchange Kroner Rate U.S. Dollars Net assets at beginning of year NK Adjustments for changes in net assets position during 20X5 Pray 1 of 3 Next >