Sales Inventory (bought on 3/1/17) . Equipment (bought on 1/1/16). Rent expense... Dividends (declared on 10/1/17).. Notes receivable (to be collected in 2020) . Accumulated depreciation-equipment. Salary payable..... Depreciation expense KQ 200,000 80,000 20,000 30,000 24,000 5,000 8,000 January 1, 2016.. Average for 2016 January 1, 2017... March 1, 2017 October 1, 2017 ..... December 31, 2017... Average for 2017 $0.13 0.14 0.18 0.19 0.21 0.22 0.20
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency:
The following U.S.$ per KQ exchange rates are applicable:
Lancer 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?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
