A subsidiary of Harris Incorporated is located in Germany. The functional currency of this subsidiary is the Euro $().$ The subsidiary acquires inventory on October $31$ of the previous year for $100,000$ which is sold on January $15$ of the current year for $150,000.$ Collection of the money takes place on February $4$ of the current year. Applicable exchange rates are as follows:

Date Spot Rate

October $311\mathrm{.}2300=1$

December $311\mathrm{.}2600=1$

January $151\mathrm{.}3000=1$

February $41\mathrm{.}3100=1$

What amount is reported for this inventory on the December $31$ US $ balance sheet?

Multiple Choice

$$123,000$

$$126,000$

$$131,000$

$$189,000$

$$226,935$