Emerald Corporation subsidiary buys marketable equity securities and inventory on April 1, 2015, and they are still on hand at year-end. Inventory is carried at cost under the lower-of-cost-or-market rule. Currency exchange rates for 1 FC follow: January 1, 2016 P 0.15 = 1 FC April 1, 2016 0.16 = 1 June 1, 2016 0.17 = 1 December 31, 2016 0.19 = 1 Assume that the peso is the subsidiary’s functional currency. What balances does a consolidated balance sheet report as of December 31, 2017? A. Marketable equity securities = P 16,000 and Inventory = P 16,000. B. Marketable equity securities = P 17,000 and Inventory = P 17,000. C. Marketable equity securities = P 19,000 and Inventory = P 16,000. D. Marketable equity securities = P 19,000 and Inventory = P 19,000.
Emerald Corporation subsidiary buys marketable equity securities and inventory on April 1, 2015, and they
are still on hand at year-end. Inventory is carried at cost under the lower-of-cost-or-market rule. Currency
exchange rates for 1 FC follow:
January 1, 2016 P 0.15 = 1 FC
April 1, 2016 0.16 = 1
June 1, 2016 0.17 = 1
December 31, 2016 0.19 = 1
Assume that the peso is the subsidiary’s functional currency. What balances does a consolidated
sheet
A. Marketable equity securities = P 16,000 and Inventory = P 16,000.
B. Marketable equity securities = P 17,000 and Inventory = P 17,000.
C. Marketable equity securities = P 19,000 and Inventory = P 16,000.
D. Marketable equity securities = P 19,000 and Inventory = P 19,000.
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