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: Accounts Receivable (net of allowance for uncollectible accounts of 1,500 LCU on December 31, 20x2, and 1,300 LCU on December 31, 20x1) Inventories, at cost Property, Plant and Equipment (net of allowance for December 31 20x2 20x1 LCU 45,000 65,000 LCU 40,000 60,000 accumulated depreciation of 39,000 LCU on December 31, 20x2, and 14,000 LCU on December 31, 20x1) 161,700 146,000 Long-Term Debt 80,000 100,000 Common Stock, authorized 27,000 shares, par value 10 LCU per share; issued and outstanding, 13,500 shares on December 31, 20x2, and December 31, 20x1 135,000 135,000 Additional Information: 1. Exchange rates are as follows: January 1, 20x1-July 31, 20x1 August 1, 20x1-October 31, 20x1 November 1, 20x1-June 30, 20x2 July 1, 20x2-December 31, 20x21 Average monthly rate for 20x1 Average monthly rate for 20x2 $ LCU 2.01 1.8 1 1.7-1 1.5-1 1.91 1.6 1 2. An analysis of the accounts receivable balance is as follows: Accounts Receivable: Balance at beginning of year Sales (44,000 LCU per month in 20x2 and 39,000 LCU per month in 20x1) Collections Write-offs (May 20x2 and December 201) Balance at end of year 20x2 20X1 LCU 41,300 528,000 (520,100) (2,700) LCU 46,500 LCU 468,000 (425,500) (1,200) LCU 41,300 Allowance for Uncollectible Accounts: Balance at beginning of year Provision for uncollectible accounts Write-offs (May 20X2 and December 201) Balance at end of year 20x2 20X1 LCU 1,300 2,900 (2,700) LCU 2,500 (1,200) LCU 1,500 LCU 1,300 3. An analysis of inventories, for which the first-in, first-out inventory method is used, follows: Inventory at beginning of year Purchases (June 20X2 and June 20x1) Goods available for sale Inventory at end of year Cost of goods sold 20x2 20x1 LCU 60,000 (65,000) LCU345,000 LCU390,000 LCU390,000 (60,000) LCU330,000 350,000 LCU410,000 4. On January 1, 20X1, Kiner's foreign subsidiary purchased land for 20,000 LCU and plant and equipment for 140,000 LCU. On July 4, 20X2, additional equipment was purchased for 33,000 LCU. Plant and equipment is being depreciated on a straight-line basis over a 10-year period with no residual value. A full year's depreciation is taken in the year of purchase. 5. On January 15, 20X1, 7 percent bonds with a face value of 100,000 LCU were issued. These bonds mature on January 15, 20X7, and the interest is paid semiannually on July 15 and January 15. The first interest payment was made on July 15, 20X1. Required: Prepare a schedule translating the selected accounts into U.S. dollars as of December 31, 20X1, and December 31, 20X2, respectively, assuming that the local currency unit is the foreign subsidiary's functional currency. (Round your dollar amounts to nearest whole dollar.) KINER COMPANY'S FOREIGN SUBSIDIARY Translation of Selected Captions into United States Dollars December 31, 20X2, and December 31, 20X1 Balance Indirect in LCUs Exchange Rate Translated into U.S. Dollars December 31, 20X1: Accounts receivable (net) 40,000 Inventories, at cost 60,000 Property, plant and equipment (net) 146,000 Long-term debt 100,000 Common stock 135,000 December 31, 20X2: Accounts receivable (net)) 45,000 Inventories, at cost 65,000 Property, plant and equipment (net) 161,700 Long-term debt 80,000 Common stock 135,000