CHAPTER 12, 6

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On January 1, 20X1, Kiner Company formed a foreign subsidiary that issued all of its currently outstanding common stock on that date Selected accounts from the balance sheets, all of which are shown in local currency units, are as follows December 31 20X2 20X1 Accounts Receivable (net of allowance for uncollectible accounts of 2,100 LCU on December 31, 20X2, and 1,900 LCU on December 31, 20x1) LCU 39,000 LCU 34,000 63,000 68,000 Inventories, at cost Property, Plant & Equipment (net of allowance for accumulated depreciation of 34,000 LCU on December 31, 20x2, and 15, 000 LCU on December 31, 20X1) 179,000 110,000 158,000 130,000 Long-Term Debt Common Stock, authorized 17,000 shares, par value 10 LCU per share; issued and outstanding, 8,500 shares on December 31, 20X2, and December 31, 20X1 85,000 85,000 Additional Information: 1. Exchange rates are as follows: LCU $ 2.0-1 1.81 January 1, 20X1July 31, 20x1 August 1, 20X1-October 31, 20x1 November , 20X1-June 30, 20X2 July 1, 20X2-December 31, 20X2 Average monthly rate for 20X1 Average monthly rate for 20X2 1.51 1.91 1.61