On January 1, 2019, Patria Company purchased all the outstanding stock of Forewing Company, located in Canada, for $145,800. Forewing's book value on January 1, 2019, was C$81,000. The fair value of Forewing's plant and equipment was C$10,000 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage value. The remainder of the differential is attributable to a copyright, which will be amortized over 5 years. During 2019, Forewing earned C$15,000 in income and declared and paid C$8,500 in dividends on October 31, 2019. Required: a.Prepare a schedule showing the differential allocation and amortization for 20X1. The schedule should present both Canadian dollars and U.S. dollars. b. Par uses the fully adjusted equity method to account for its investment. Provide the entries that it would record in 20x1 for its investment in North Bay for the following items: 1. Purchase of Investment in Foreign Company 2. Recording Patria's Share in Foreign Company 3. Recognition of dividend paid by Foreign. 4.Amortization of differential 5. Recognition of translation adjustment on differential c. Prepare a schedule showing the proof of the translation adjustment for North Bay as a result of the translation of the subsidiary's accounts from Canadian dollars to U.S. dollars. Then provide the entry that Par would record for its share of the translation adjustment resulting from the translation of the subsidiary's accounts. The direct exchange rate for the Canadian dollar (C$) were as follows: Canadian dollar (C$) to US$ On January October 31, 1, 2019 2019 C$1 = C$1 = $0.78 $0.75 December | The average 31, 20X1 exchange rate C$1 = C$1 = $0.76 $0.74