Problem 10-32 (LO 10-3, 10-4) Kingsfield starts a subsidiary operation in a foreign country on January 1, 2015. The country's currency is the kumqut (KQ). To start this business, Kingsfield invests 10,000 kumquats. Of this amount, i t spends 3,000 kumquats immediately to acquire equipment. Later, on April 1, 2015, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. The currency exchange rates for the kumquat for this year follow: January 1, 2015 April 1, 2015 June 1, 2015 Weighted average -2015 December 31, 2015 1.59 1.66 1.64 1.62 As of December 31, 2015, the subsidiary reports the following trial balance Credits Debits KQ 8,000 9,000 3,000 Cash Accounts receivable Equipment Accumulated depreciation Land Accounts payable Notes payable (due 2018) Common stock Dividends declared (6/1/15) Sales Salary expense Depreciation expense Miscellaneous expenses KQ 600 5,000 3,000 5,000 10,000 4,000 25,000 5,000 600 9,000 Totals KQ43,600 KQ43,600 A corporation based in East Lansing, Michigan, Kingsfield uses the U.S. dollar as its reporting currency