Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales Inventory (bought on 3/1/17) Equipment (bought on 1/1/16) Rent expense Dividends (declared on 10/1/17) Notes receivable (to be collected in 2020) Accumulated depreciation-equipment salary payable Depreciation expense KQ 15e,eee 75,000 5e,e00 10,e0e 20,000 31,000 15,e0e 4,80e 5,ee0 The following U.S.$ per KQ exchange rates are applicable 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? (Round your answers to 2 decimal places.) b. Sales Inventory Equipment Rent expense Dividends Notes receivable Accumulated depreciation- equipment Salary payable Depreciation expense