Kingsfield establishes a subsidiary operation in a foreign country on January 1, 2017. The countrys currency is the kumquat (KQ). To start this business, Kingsfield invests 10,000 kumquats. Of this amount, it spends 3,000 kumquats 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 kumquat for 2017 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, 2017, the subsidiary reports the following trial balance:

	Debits			Credits
Cash	KQ	8,000
Accounts receivable		9,000
Equipment		3,000
Accumulated depreciation				KQ	600
Land		5,000
Accounts payable					3,000
Notes payable (due 2025)					5,000
Common stock					10,000
Dividends declared (6/1/17)		4,000
Sales					25,000
Salary expense		5,000
Depreciation expense		600
Miscellaneous expenses		9,000
Totals	KQ	43,600		KQ	43,600

A corporation based in East Lansing, Michigan, Kingsfield uses the U.S. dollar as its reporting currency.

1. Assume that the subsidiarys functional currency is the kumquat. Prepare a trial balance for it in U.S. dollars so that 2017 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 2017 consolidated financial statements can be prepared.