A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1. 2015. for 100.000 pesos each ft pays for both item on June 1.2025. and they e still on hand at year- end. Inventory is carried at cost under the lower-of-cost-or-market n.de. Currency exchange rates for 1 peso follow:
January 1. 2015.....................................$0.15 = 1 peso
April 1.2015.................................................0.16- 1
June 1. 2015.................................................0.17 = 1
Decembec 311 2015........................................0.19 = 1
Assume that the U.S. dollar is the subsidiary's functional currency. What balances does a consolidated balance sheet report as of December 31. 2015?
a Marketable equity securities = $16,000 and Inventory = $16.000
b. Marketable equity securities = $17,000 and Inventory = $17.000.
c. Marketable equity securities = $19000 and Inventory = $16,000.
d. Marketable equity securities = $19,000 and Inventory = $19000.