Elmer acquired all outstanding stock of Fudd on 1/1/X0 for $2,000,000. The book value of Fudd's assets of $1,750,000 represented the fair value, with the exception of an unrecorded intangible asset with a 10 year life of $250,000. Elmer's reporting currency is the Euro, while Fudd's functional currency is the US$. Relevant exchange rates were:

Jan 1 , 20X0 $1=$1.25 Dec 31, 20X0 $1=$1.27 Weighted Avg for the year $1=1.28 What is the amount that the intangible asset and amortization expense will be recorded in the consolidated financial statements for the year ended 12/31/X0

Select one:

a. 281,250 (Asset), 31,250(Expense)

b. 285,750(Asset), 32,000(Expense)

c. 285,750(Asset), 31,250(Expense)

d. 317,500 (Asset), 32,000(Expense)

e. 281,250 (Asset), 32,000(Expense)