Techno Builders has acquired a 70% interest in the equity of a foreign company, Prefabco, whose functional currency is the FC. Although Prefabco began operations in June 2008 when 1 FC equaled $1.95, Techno did not acquire its interest until March 31, 2011, when 1 FC equaled $2.08. Techno paid 400,000 FC for its interest in Prefabco when the subsidiary€™s condensed pre-closing trial balance was as follows:

Prefabco had net income and dividends, declared at year-end and paid in the first quarter of the next year, subsequent to Techno's acquisition as follows along with selected rates of exchange:

Required
Prepare a schedule to determine the balance in Techno€™s account €˜€˜Investment in Prefabco€™€™ as of year-end 2013 and also prepare all of the entries that would be necessary to eliminate the investment account in a worksheet to consolidate the parent company and its subsidiary for the year 2013. Techno uses the simple equity method to account for its interest in the subsidiary.

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Debit FC Balances Debit FC Balances Depreciable assets [ner)... Other assets. . Cost of sales.. Other expenses 250,000 Dable assets (net).. 350,000 Other liabilities. . 125,000 tock.. 504,000 Retained earnings 125,000 .. 126,000 194,000 140,000 134,000 720,000 1,314,000 . . ales .. .. otal. 1,354,000 Total.... . Net Income Dividends Average Year-end Dollar/FC Dollar/FC 2.25 2.34 2.18 2.21 2.40 2012 91,500