Lancer, Inc., starts a subsidiary in a foreign country on January 1,2008. The following account bal¬ ances for the year ending December 31, 2009, are stated in kanquo (KQ), the local currency: LO6 Sales. KQ 200,000 Inventory (bought on 3/1/09). 100,000 Equipment (bought on 1/1/08). 80,000 Rent expense. 10,000 Dividends (paid on 10/1/09). 20,000 Notes receivable (to be collected in 2012). 30,000 Accumulated depreciation—equipment . 24,000 Salarypayable. 5,000 Depreciation expense. 8,000 The following exchange rates for $1 are applicable:

January 1,2008.13 KQ January 1, 2009..... 18 March 1,2009.19 October 1,2009.21 December 31, 2009.22 Average for 2008.14 Average for 2009.20 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?