On January 1. 20x1, Kiner Company formed a foreign subsidiary that issued all of its currently outstanding common stock on that date. Selected accounts from the balance sheets, all of which are shown in local currency units, are as follows: 20x220x1 Accounts Receivable (net of allowance for uncollectible accounts of 2,300 LCU on December 31, 20x2, and 2,100 LCU on December 31, 20x1) LCU 44,000 LCU 39,000 79,00074,000 Inventories, at cost Property, Plant &Equipment (net of allovance for accumulated depreciation of 38,000 LCU on December 31, 20X2, and 17,000 LcU on December 31, 20x1) 200,000 130,000 181,000 150,000 Long-Term Debt Common Stock, authorized 21,000 shares, par value 10 LCU per share: issued and outstanding,10,500 shares on December 31, 20x2, and December 31, 20x1 05,000105,000 Additional Information: 1. Exchange rates are as follows: 2.01 1.81 January 1, 20x1July 31, 20x1 August 1, 20x1-October 31, 20x1 November 1, 20x1-June 30, 20x2 July 1, 20x2-December 31, 20x2 Average monthly rate for 20x1 Average monthly rate for 20x2 1.5-1 1.9-1 1.61 2. An analysis of the accounts receivable balance is as follows: Accounts Receivable Balance at beginning of year Sales (43,000 LCU per month in 20x2 and 38,000 LCU 41,100 516,000 LCU 456,000 (507,500) LcU per month in 20x1) Collections Write-offs (May 20x2 and December 20x1) Balance at end of year (413,900) LCU 46,300 LCU 41,100