XYZ Corporation,a Canadian Parent Firm,has a Wholly Owned Sales Affiliate,ABC

Multiple Choice

XYZ Corporation,a Canadian parent firm,has a wholly owned sales affiliate,ABC Ltd.,in the United Kingdom.The affiliate was established to service to the local market. Assume that:
1) the functional currency of ABC is the pound
2) the reporting currency is the dollar
3) the initial exchange rate $1.00 = £ 0.67
ABC's nonconsolidated balance sheets and the footnotes to the financial statements indicate that ABC owes the parent firm £200,000.Assume that,XYZ had made an investment of $300,000 in the affiliate.Under CICA 1650,the intercompany debt and investment will appear on the consolidated balance sheet as:

A) £200,000
B) $201,493
C) $298,507
D) none of these