Lancer, Inc., starts a subsidiary in a foreign country on January 1, 2014. The following account balances for the year ending December 31, 2015, are stated in kanquo (KQ), the local currency:

Sales	KQ	260,000
Inventory (bought on 3/1/15)		156,000
Equipment (bought on 1/1/14)		72,000
Rent expense		16,000
Dividends (declared on 10/1/15)		26,000
Notes receivable (to be collected in 2018)		42,000
Accumulated depreciationequipment		21,600
Salary payable		6,200
Depreciation expense		7,200

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

January 1, 2014	$ 0.25
January 1, 2015	0.30
March 1, 2015	0.31
October 1, 2015	0.33
December 31, 2015	0.34
Average for 2014	0.26
Average for 2015	0.32

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? (Round your answers to 2 decimal places.)

Account	Exchange Rate
Sales
Inventory
Equipment
Rent expense
Dividends
Notes receivable
Accumulated depreciationequipment
Salary payable
Depreciation expense

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.)

Account	Exchange Rate
Sales
Inventory
Equipment
Rent expense
Dividends
Notes receivable
Accumulated depreciationequipment
Salary payable
Depreciation expense