slly owned subsidiary in Israel that is functional currency. On October 1, evance of this remesult 25 The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiar has been determined as having the Israeli shekel (ILS) as its functional currency 2016, the Israeli subsidiary borrowed 500,000 Swiss francs (CHF) from a bank in Geneva to years at an interest rate of 5 percent per year. The note payable and accrued interest are the date of maturity. On December 31, 2017, the Israeli subsidiary has the following foreion rency balances on its books: Interest expense....... Interest payable ......... Note payable.......... CHF 25,000 CHF 31,250 CHF 500,000 Relevant exchange rates between the Israeli shekel (ILS) and Swiss franc (CHF), and between the U.S. dollar (USD) and Israeli shekel (ILS) follow: October 1, 2016 ...... January 1, 2017... Average for 2017 December 31, 2017.... ILS per CHF 3.86 3.91 3.95 4.02 USD per ILS 0.30 0.29 0.27 0.25 a. Determine the Israeli shekel amounts at which the Swiss franc balances should be reported on the Israel subsidiary's December 31, 2017, trial balance. b. Determine the U.S. dollar amounts at which the Swiss franc balances should be included in IOP's 2017 consolidated financial statements