Compte, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2023. The following account balances for the year ending December 31, 2024, are stated in kuna (K), the local currency:

The following U.S. dollar per kuna exchange rates are applicable:

Compte is preparing account balances to produce consolidated financial statements.

a. Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?

b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?

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Sales ... Inventory (bought on 3/1/24).. Equipment (bought on 1/1/23) Rent expense.... Dividends (declared on 10/1/24) Notes receivable (to be collected in 2027) Accumulated depreciation-equipment Salary payable .... Depreciation expense. *** K 200,000 100,000 80,000 10,000 20,000 30,000 24,000 5,000 8,000