Assume that on 31 December 2019, an Australian firm set up a wholly owned firm in the US when the exchange rate between the Australian dollar (AUD) and the US dollar (USD) was AUD1.00 = USD1.00. Assume that in March 2020, the exchange rate changed to AUD 1.400 = USD 1.00, and the balance sheet of the US subsidiary in USD was as shown in the first two columns in the table below. On 31 March 2020, the parent firm prepared the translation sheet to translate the accounts of the US subsidiary into AUD currency.

What is the equivalent AUD value of the subsidiarys total assets according to the temporal method by the end of March 2020?

	a.	$17,600
	b.	$20,800
	c.	$22,400
	d.	$22,000
	e.	none of the above

Cash Inventory Total Notes payable Common stock Subtotal Translation adjustment Total USD $4,000 $12,000 $16,000 $5,000 $11,000 $16,000 Exchange rate ? ? ? ? AUD