(12 marks) Question 5 Karoon Gas establishes a subsidiary operation in a foreign country on January 1, 2017 The country's currency is the Zolty (ZL). To start this business, Karoon Gas invests 20,000 Zolty. Of this amount, it spends 6,000 Zolty immediately to acquire equipment. Later, on April 1, 2017, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. The U.S. dollar ($) exchange rates for the Zolty (ZL) for 2017 follow: ZL 1.00=US$ 1.71 ZL 1.00 US$ 1.59 ZL 1.00= US$1.66 ZL 1.00= US$ 1.64 ZL 1.00= US$ 1.62 January 1 April 1 June 1 Weighted average December 31 As of December 31, 2017, the subsidiary reports the following trial balance: Credits Debits ZL 16,000 18,000 6,000 Cash Accounts receivable Equipment Accumulated depreciation Land Accounts payable Notes payable (due 2025) Common stock Dividends declared (1/06/17) Sales ZL1,200 10,000 6,000 10,000 20,000 8,000 50,000 10,000 1,200 18,000 Salary expense Depreciation expense Miscellaneous expenses ZL 87.200 ZL87,200 Totals Being a corporation based in Ohio, Karoon Gas uses the U.S. dollar as its reporting currency Required: a) Assume that the subsidiary's functional currency is the Zolty (ZL). Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial statements can be prepared. (6 marks) b) Assume that the subsidiary's functional currency is the U.S. dollar. Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial st can be prepared. (6 marks)