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.

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