I have completed part 1 of 3 which is the picture below. I need help with part 2 and 3 of the homework please. The answers provided in the chegg textbook solution for this question are not correct. Thank you.

Case 8-2 Palmerstown Company Palmerstown Company established a subsidiary inaforeign country on January 1, Year 1, by investing 8,000,000 pounds when the exchange rate was $1.00/pound Palmerstownnegotiated a bank loan of 4,000,000 pounds on January 5, Year 1, and purchased plant and equipment in the amount of 10,000,000 poundson January 8, Year 1. Plant and equipment is depreciated on a straight-line basis over a 10-year useful life. The first purchase of inventory in the amount of 1,000,000 pounds was made on January 10, Year 1. Additional inventory of 12,000,000 pounds was acquired at three points in time during the year at an average exchange rate of $0.86/pound. Inventory on hand at year-end was acquired when the exchange rate was $0.83/pound. The first-in, first-out (FIFO) method is used to determine cost of goods sold. Additional exchange rates for the pound during Year 1 are as follows: $1.00 January 1-31, Year 1 Average Year 1 December 31, Year 1 0,80 The foreign subsidiary income statement for Year 1 and balance sheet at December 31, Year 1, are as follows Income Statement For the Year Ended December 31, Year 1 Pounds (in thousands)