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 1,900 LCU on December 31, 20X2, and 1,700 LCU on December 31, 20X1) Inventories, at cost Property, Plant and Equipment (net of allowance for accumulated depreciation of 33,900 LCU on December 31, 20X2, and 15,000 LCU on December 31, 20X1) Long-Term Debt Common Stock, authorized 24,000 shares, par value 10 LCU per share; issued and outstanding, 12,000 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 80,000 LCU 37,000 75,000 180,100 160,000 90,000 110,000 120,000 120,000 20X2 20X1 Accounts Receivable: Balance at beginning of year Sales (42,000 LCU per month in 20X2 and 37,000 LCU per month in 201) Collections Write-offs (May 20X2 and December 20X1) Balance at end of year LCU 38,700 504,000 (495,900) (2,900) LCU 43,900 LCU 444,000 (404,300) (1,000) LCU 38,700 Allowance for Uncollectible Accounts: Balance at beginning of year Provision for uncollectible accounts Write-offs (May 20X2 and December 20X1) Balance at end of year 20X2 20X1 LCU 1,700 3,100 (2,900) LCU 1,900 LCU 2,700 (1,000) LCU 1,700 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 75,000 350,000 LCU 425,000 (80,000) LCU 345,000 20X1 LCU 390,000 LCU 390,000 (75,000) LCU 315,000 4. On January 1, 20X1, Kiner's foreign subsidiary purchased land for 25,000 LCU and plant and equipment for 150,000 LCU. On July 4, 20X2, additional equipment was purchased for 39,000 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 remeasuring the selected accounts into U.S. dollars for December 31, 20X1, and December 31, 20X2, respectively, assuming the U.S. dollar is the functional currency for the foreign subsidiary. The schedule should be prepared using the following form: Note: Round your dollar amounts to nearest whole dollar. KINER COMPANY'S FOREIGN SUBSIDIARY Remeasurement of Selected Captions into United States Dollars December 31, 20X2, and December 31, 20X1 Balance in Indirect Exchange LCUs Rate Remeasured into U.S. Dollars Item December 31, 20X1: Accounts Receivable (net) 37,000 Inventories, at Cost 75,000 Property, Plant, and Equipment (net) 160,000 Long-term Debt 110,000 Common Stock 120,000 December 31, 20X2: Accounts Receivable (net) 42,000 Inventories, at Cost 80,000 Property, Plant, and Equipment (net) 180,100 Long-term Debt 90,000 Common Stock 120,000