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: Salary payable Sales Inventory (bought on 3/1/28) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Accumulated depreciation-equipment Depreciation expense K 320,000 176,000 84,000 29,000 28,000 Notes receivable (to be collected in 2023) 48,000 25, 200 7,400 8,400 The following U.S.$ per kuna exchange rates are applicable: January 1, 2019 $0.31 Average for 2019 0.32 January 1, 2020 0.36 March 1, 2020 0.37 October 1, 20 28 0.39 December 31, 2020 0.40 Average for 2020 0.38 Lancer is preparing account balances to produce consolidated financial statements. a. 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? 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? (For all requirements, round your answers to 2 decimal places.) a. Account Sales Inventory Equipment Rent expense Dividends Notes receivable Accumulated depreciation- equipment Salary payable Depreciation expense b. Sales Inventory Equipment Rent expense Dividends Notes receivable Accumulated depreciation-- equipment Salary payable Depreciation expense Exchange Rate