Foreign Sub, for which the functional currency is the local currency, recognizes an accounts payable on 11/19/20X1. On December 31, 20X1, the Foreign Sub's parent company determines that the exchange rate had changed since the payable was recognized. In its consolidated financial statements, the parent company should report Foreign Sub's payable using the exchange rate:

Multiple Choice

• in effect on 12/31/20X1.

• that results in the highest reported receivable.

• in effect on 11/12/20X1.

• that results in the lowest reported receivable.