Assume that U.S. parent company ABC has a subsidiary XYZ in Outer Mongolia. XYZ's total assets are as follows in Mongolian marks (assuming Mongolian currency is the functional currency):

Cash and receivables 500,000

Inventory 500,000

Fixed assets (net) 900,000

The relevant exchange rates are:

OMM 1.6800 closing rate on the balance sheet date

OMM 1.5500 exchange rate when the fixed assets were acquired

OMM 1.6300 average exchange rate for the period

OMM 1.6600 average exchange rate when ending inventory was acquired.

What is the total value of assets if the functional currency is the Outer Mongolian mark?

Answers:	a. $1,175,883
	b. $1,130,952
	c. $1,185,012
	d. $1,179,469