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: Sales Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense K 310,000 170,500 82,000 20,000 Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense The following U.S.$ per kuna exchange rates are applicable: January 1, 2019 $0.30 Average for 2019 0.31 January 1, 2020 0.35 March 1, 2020 0.36 October 1, 2020 0.38 December 31, 2020 0.39 Average for 2020 0.37 28,000 47,000 24,600 7,200 8,200 Lancer is preparing account balances to produce consolidated financial statements.