Kingsfield establishes a subsidiary operation in a foreign country on January 1, 2017. The country's currency is the kumquat (KQ). To start this business, Kingsfield invests 10,000 kumquats. Of this amount, it spends 3,000 kumquats immediately to acquire equipment. Later, on April 1, 2017, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year.

The U.S. dollar ($) exchange rates for the kumquat for 2017 follow:

January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1.71

April 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...1.59

June 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...1.66

Weighted average . . . . . . . . . . . . . . . . . . . . . . . ...1.64

December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . ...1.62

As of December 31, 2017, the subsidiary reports the following trial balance:

A corporation based in East Lansing, Michigan, Kingsfield uses the U.S. dollar as its reporting currency.
a. Assume that the subsidiary's functional currency is the kumquat. Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial statements can be prepared.
b. Assume that the subsidiary's functional currency is the U.S. dollar. Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial statements can be prepared.

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Debits Credits asi.... Accounts recevable Equipment Accumulated depreciation Land.. Accounts payable Notes payable (due 2025) Common stock KQ 8,000 9,000 3,000 KQ 600 000) 3,000 5,0000 10,000 4,000 Sales 600 9,000 KQ 43,600