Aguilar Company establishes a subsidiary operation in a foreign country on January 1, 2024. The country’s currency is the rial (R). To start this business, Aguilar invests 10,000 rials. Of this amount, it spends 3,000 rials immediately to acquire equipment. Later, on April 1, 2024, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. Aguilar uses the U.S. dollar as its reporting currency. The U.S. dollar ($) exchange rates for the rial for 2024 follow:

As of December 31, 2024, the subsidiary reports the following trial balance:

a. Assume that the subsidiary’s functional currency is the rial (R). Prepare a trial balance for it in U.S. dollars so that 2024 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 2024 consolidated financial statements can be prepared.

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January 1 April 1.... June 1 Weighted average December 31 $1.71 1.59 1.66 1.64 1.62