Question: 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

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 NKr430,000 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 $226,000 for 20X5, and its total stockholders' equity on January 1, 20X5, was $3,500,000. Pirate declared $200,000 of dividends during 20X5. 6. Exchange rates were as follows: July 1, 20X3 December 30, 20X4 January 1, 20X5 July 1, 20X5 December 15, 20X5 December 31, 20X5 Average for 20X5 Required: NKr 1 = $ 0.15 NKr 1 = $ 0.18 NKr 1 = $ 0.18 NKr 1 = $ 0.19 NKr 1 = $ 0.205 NKr 1 = $ 0.21 NKr 1 = $ 0.20 a. Prepare a schedule translating the trial balance from Norwegian kroner into U.S. dollars. Assume the krone is the functional currency. b. Assume that Pirate 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. c. Prepare a schedule that determines Pirate's consolidated comprehensive income for 20X5. d. Compute Pirate's total consolidated stockholders' equity at December 31, 20X5. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare a schedule that determines Pirate's consolidated comprehensive income for 20X5. Note: Amounts to be deducted should be indicated with a minus sign. Income from Pirate's operations for 20X5, exclusive of income from the Norwegian subsidiary Pirate's Net Income Pirate's Consolidated Comprehensive Income 0 $ 0 d. Compute Pirate's total consolidated stockholders' equity at December 31, 20X5. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute Pirate's total consolidated stockholders' equity at December 31, 20X5. Consolidated stockholders' equity Required C Required D >

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