Lennon Ltd Has Two Foreign Operations Based in Japan Exchange Rate Information Is

Multiple Choice

Lennon Ltd has two foreign operations based in Japan.The following information was extracted from the foreign operation's accounts for the period ended 30 June 2015: $$\begin{array} { | l | r | r | } \hline \text { In Japanese yen } ( ¥ ) & \text { Yoko Ltd } & \text { Ono Ltd } \\\hline \text { Machinery (at cost purchased 1 July 2013) } & 85000 & 100000 \\\hline \text { Inventory on hand (purchased second quarter 2015) } & 1000 & 25000 \\\hline \text { Depreciation expense-machinery } & 8200 & 10000 \\\hline \text { Land (purchased 1 July 2013, revalued 1 June 2015) } & 150000 & 200000 \\\hline\end{array}$$ Exchange rate information is:
$$\begin{array} { | l | l | } \hline \text { July } 2013 & \text { A\$1.00 } = ¥ 74 \\\hline \text { Average for year ended } 30 \text { June } 2015 & \text { A\$1.00 } = ¥ 65 \\\hline 1 \text { June } 2015 & \text { A\$1.00 } = ¥ 68 \\\hline \text { Second quarter } 2015 & \text { A\$1.00 } = ¥ 67 \\\hline 30 \text { June } 2015 & \text { A\$1.00 } = ¥ 61 \\\hline\end{array}$$ The translation from Japanese yen to Australian dollars resulted in the following balances (rounded to the nearest ¥000) :
$$\begin{array} { | l | r | r | } \hline \text { In Japanese yen } ( ¥ \text { ) } & \text { Yoko Ltd } & \text { Ono Ltd } \\\hline \text { Machinery (at cost purchased 1 July 2013) } & 1149 & 1639 \\\hline \text { Inventory on hand (purchased second quarter 2015) } & 239 & 410 \\\hline \text { Depreciation expense-machinery } & 111 & 154 \\\hline \text { Land (purchased 1 July 2013, revalued 1 June 2015) } & 2205 & 3278 \\\hline\end{array}$$ Which of the following translation processes were applied to Yoko Ltd and Ono Ltd,respectively,for the year ended 30 June 2015?

A) functional currency; presentation currency
B) functional currency; functional currency
C) presentation currency; functional currency
D) presentation currency; presentation currency