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32. Kingsfield establishes a subsidiary operation in a forcign country on January 1,2020. The country/s currency is the rial ( R ). To start this
32. Kingsfield establishes a subsidiary operation in a forcign country on January 1,2020. The country/s currency is the rial ( R ). To start this busines, Kingsfield invests 10,000 rials. Of this amount, it spends 3.000 rials immediately to acquire equipment. Later, on April 1,2020, it also purcthases land. All subsidiary operational activities occur at an even rate throughout the year. Kingsficid uses the US. dollar as its reporting currency. The U.S. dollar ($) exchange rates for the rial for 2020 follow: As of December 31,2020 , the subsidiary reports the following trial balance: a. Assume that the subsidiary's functional currency is the rial (R). Prepare a trial balance for it in U.S. dollars so that 2020 consolidated financial statements can be prepared. 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 2020 consolidated financial statements can be prepared
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