A U.S. firm purchased 50% 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
Retained earnings	300,000	FC
	500,000	FC

The U.S. firm paid 295,000 FCs for the foreign firm. The payment in excess of book value is traceable to undervalued equipment owned by the foreign firm (5 expected years for use). The foreign firm had a net income of 10,000 FCs during 20X1. The year-end cumulative translation adjustment is $8,000 debit balance. Assume that the following exchange rates are relevant:

Date	1 FC equal to
January 1, 20X1	$2.00
December 31, 20X1	$1.80
20X1 average	$1.95

(1) Prepare all eliminating journal entries for the 20X1 consolidated statements. Assume that the U.S. firm used the simple equity method

(2) What is the CTA balance in the consolidated balance sheet?