What amount does Salisbury’s consolidated balance sheet report for this inventory at December 31, 2010?

a. $16,000.

b. $17,000.

c. $18,000.

d. $19,000.

A subsidiary of Salisbury, Inc., is located in a foreign country whose functional currency is the schweikart (SWK). The subsidiary acquires inventory on credit on November 1, 2010, for SWK 100,000 that is sold on January 17, 2011, for SWK 130,000. The subsidiary pays for the inventory on January 31, 2011. Currency exchange rates for 1 SWK are as follows:

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November 1, 2010 December 31, 2010 January 17, 2011 January 31, 2011 Average for 2011 $0.16 1 SWK 0.17 = 1 0.18 1 0.19 1 0.20 1