3. XYZ Corporation, a U.S. parent firm, has a wholly owned sales affiliate, ABC Ltd., in the United Kingdom. The affiliate was established to service to the local market. Assume 1. the functional currency of ABC is the pound 2. the reporting currency is the dollar that: 3. the initial exchange rate $1.00 = f 0.67 ABC's nonconsolidated balance sheets and the footnotes to the financial statements indicate that ABC owes the parent firm $200,000. Assume that, XYZ had made an investment of $500,000 in the affiliate. Under FASB 52, the intercompany debt and investment will appear on the consolidated balance sheet as: A. $200,000 B. $201,493 C. $298,507 D. none of the above