Kingsfield establishes a subsidiary operation in a foreign country on January 1, 2020. The countrys currency is the rial (R). To start this business, Kingsfield invests 10,000 rials. Of this amount, it spends 3,000 rials immediately to acquire equipment. Later, on April 1, 2020, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. Kingsfield uses the U.S. dollar as its reporting currency. The U.S. dollar ($) exchange rates for the rial for 2020 follow:

January 1	$	1.71
April 1		1.59
June 1		1.66
Weighted average		1.64
December 31		1.62

As of December 31, 2020, the subsidiary reports the following trial balance:

	Debits			Credits
Cash	R	8,000
Accounts receivable		9,000
Equipment		3,000
Accumulated depreciation				R	600
Land		5,000
Accounts payable					3,000
Notes payable (due 2028)					5,000
Common stock					10,000
Dividends declared (6/1/20)		4,000
Sales					25,000
Salary expense		5,000
Depreciation expense		600
Miscellaneous expenses		9,000
Totals	R	43,600		R	43,600

1. Assume that the subsidiarys 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.

2. Assume that the subsidiarys 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.

Assume that the subsidiarys 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.

	Debits	Credits
Cash
Accounts receivable
Equipment
Accumulated depreciation
Land
Accounts payable
Notes payable
Common stock
Dividends declared
Sales
Salary expense
Depreciation expense
Miscellaneous expense
Translation adjustment