Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency:

SalesK300,000Inventory (bought on 3/1/20) 165,000Equipment (bought on 1/1/19) 80,000Rent expense 20,000Dividends (declared on 10/1/20) 28,000Notes receivable (to be collected in 2023) 46,000Accumulated depreciationequipment 24,000Salary payable 7,000Depreciation expense 8,000

The following U.S.$ per kuna exchange rates are applicable:

January 1, 2019$0.29Average for 20190.30January 1, 20200.34March 1, 20200.35October 1, 20200.37December 31, 20200.38Average for 20200.36

Lancer is preparing account balances to produce consolidated financial statements.

Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?

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?