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 LCU, are as follows: Accounts Receivable (net of allowance for uncollectible accounts of 1,700 LCU on December 31, 20X2, and 1,500 LCU on December 31, 20X1) Inventories, at cost Property, Plant and Equipment (net of allowance for accumulated depreciation of 38,000 LCU on December 31, 20X2, and 14,000 LCU on December 31, 20X1) Long-Term Debt Common Stock, authorized 29,000 shares, par value 10 LCU per share; issued and outstanding, 14,500 shares on December 31, 20X2, and December 31, 20X1 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, 20X2 Average monthly rate for 20X1 Average monthly rate for 20X2 LCU 2.0 = $ 1 LCU 1.8 = $ 1 LCU 1.7 = $ 1 LCU 1.5 = $ 1 LCU 1.9 = $ 1 LCU 1.6 = $ 1 2. An analysis of the accounts receivable balance is as follows: December 31 20X2 20X1 LCU 42,000 68,000 LCU 37,000 63,000 162,800 148,000 90,000 110,000 145,000 145,000 20X2 20X1 Accounts Receivable: Balance at beginning of year Sales (43,000 LCU per month in 20X2 and 38,000 LCU per month in 20X1) Collections Write-offs (May 20X2 and December 20X1) Balance at end of year 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 LCU 63,000 335,000 LCU 398,000 (68,000) LCU 330,000 20x1 LCU 375,000 LCU 375,000 (63,000) LCU 312,000 LCU 38,500 516,000 (507,900) (2,900) LCU 43,700 LCU 456,000 (416,300) (1,200) LCU 38,500 4. On January 1, 20X1, Kiner's foreign subsidiary purchased land for 22,000 LCU and plant and equipment for 140,000 LCU. On July 4, 20X2, additional equipment was purchased for 32,000 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 110,000 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. Note: 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 in LCUs Indirect Exchange Rate Translated into U.S. Dollars Item December 31, 20X1: Accounts Receivable (net) 37,000 Inventories, at Cost 63,000 Property, Plant and Equipment (net) 148,000 Long-term Debt 110,000 Common Stock 145,000 December 31, 20X2: Accounts Receivable (net) 42,000 Inventories, at Cost 68,000 Property, Plant and Equipment (net) 162,800 Long-term Debt 90,000 Common Stock 145,000