Please show all work and calculations.

Ch. 11-Problems A U.S. firm purchased 100% of a foreign firm on January 1 20X1, when the foreign firm had the following equity accounts: Common stock 150,000 FC Paid-in excess of par value 50,000 FC 200,000 FC 400,000 FC Retained earnings The U.S. firm paid 420,000 FCs for the foreign firm. The payment in excess of book value is traceable to undervalued land owned by the foreign firm. The foreign firm had a net income of 25,000 FCs during 20X1. Assume that the following exchange rates are relevant: Date January 1, 20X1 December 31, 20XI 20X1 average 1 FC equal to $2.00 S1.80 $1.95 Required Prepare all the journal entries to record and update the investment account of the U.S. firm and the necessary eliminating and adjusting entries for the 20X1 consolidated statement. Assume that the U.S firm used the simple equity method