_____ a Foreign Subsidiary Has Provided the Following Information with Respect

Multiple Choice

_____ A foreign subsidiary has provided the following information with respect to its year-end inventories:
The inventory was acquired when the direct exchange rate was $.14. Assuming that the U.S. dollar is the functional currency, what should be the valuation of the inventory in dollars?

A) $10,000
B) $12,000
C) $13,000
D) $14,000
E) None of the above.