4. On January 1, 20X1, Pat Company formed a foreign subsidiary. On February 15, 20xi, Pat's subsidiary purchased 100,000 local currency units (LCU) of inventory. Of the original inventory purchased on February 15, 20X1, 25,000 LCU made up the entire inventory or December 31, 20X1. The exchange rates were 2.2 LCU $1 from January 1, 20X1, to June 30, 20X1, and 2 LCU $1 from July 1, 20X1, to December 31, 20X1. The December 31 20X1, inventory balance for Pat's foreign subsidiary should be restated in U.S. dollars in the amount of a. $10,500. b. $11,364 c. $11,905. d. $12,500