Lancer Inc starts a subsidiary in a foreign country on Lancer, Inc., starts a subsidiary in a foreign country on January 1, 2012. The following account balances for the year ending December 31, 2013, are stated in kanquo (KQ), the local currency:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . KQ 200,000Inventory (bought on 3/1/13) . . . . . . . . . . . . . . . 100,000Equipment (bought on 1/1/12). . . . . . . . . . .. . . . . 80,000Rent expense . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 10,000Dividends (paid on 10/1/13) . . . . . . . . . . . . . . . . 20,000Notes receivable (to be collected in 2016) . . . . . . 30,000Accumulated depreciationequipment . . . ... . . . 24,000Salary payable . . . . . . . . . . . . . . . . . . . . . . . . .... . . 5,000Depreciation expense. . . . . . . . . . . . . . . . . . . . ... . 8,000The following exchange rates for $1 are applicable:January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 KQJanuary 1, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18March 1, 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19October 1, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Average for 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Average for 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Lancer is preparing account balances to produce consolidated financial statements.a. Assuming that the kanquo is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?View Solution: Lancer Inc starts a subsidiary in a foreign country on SOLUTION-- http://solutiondone.online/downloads/lancer-inc-starts-a-subsidiary-in-a-foreigncountry-on/ Unlock answers here solutiondone.online
