On 31 December 20x1, Quixote Company, whose functional and presentation currency is the dollar, acquired 30% of the share capital of Sanchoz Company, whose functional currency is the FC, for $396,000. Quixote Company is able to exert significant influence over the business policy decisions of Sanchoz Company. The book value and fair value of Sanchoz’s net assets at the date of acquisition were FC 1,380,000 and FC 1,430,000, respectively. The difference between fair value and book value of net assets was attributable to a piece of freehold land. Sanchoz reported net earnings before tax of FC 187,500 for the year ended 31 December 20x2. Tax rate is 20%. The following are the relevant exchange rates:

Required
1. Show the foreign currency translation reserves (FCTR) attributable to the investment in Sanchoz Company in the consolidated statement of financial position of Quixote Company at 31 December 20x2.
2. Show the balance in the Investment in Sanchoz Account in the consolidated statement of financial position of Quixote Company at 31 December 20x2.

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31/12/20x1... 31/12/20x2.... Average rate for 20x2. FC 1- $0.88 $0.84 $0.85