U.S. Multi Company established a foreign subsidiary, called ForSub Company, on January 1, 2011. The local currency

Question:

U.S. Multi Company established a foreign subsidiary, called ForSub Company, on January 1, 2011. The local currency is the crown; on the date the subsidiary was established, the was 2 crowns to 1 U.S. dollar. U.S. Multi invested U.S.$6,000 to get things started. In addition, a local loan in the amount of 8,000 crowns, equivalent to U.S.$4,000, was obtained. ForSub used the 20,000 crowns in initial financing to acquire the following assets:
(in crowns)
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Inventory . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
During 2011, ForSub conducted no business operations beyond the purchase of the assets listed above. Prepare a translated balance sheet, in U.S. dollars, for ForSub as of December 31, 2011, assuming that on that date the is
(1) 4 crowns to each U.S. dollar and
(2) 1 crown to each U.S. dollar.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...