A Clarke Corporation subsidiary buys marketable equity securities and

A Clarke Corporation subsidiary buys marketable equity securities and inventory on April 1. 2015. for 100.000 pesos each ft pays for both item on June 1.2025. and they e still on hand at year- end. Inventory is carried at cost under the lower-of-cost-or-market n.de. Currency exchange rates for 1 peso follow:

January 1. 2015……………………………….$0.15 = 1 peso

April 1.2015………………………………………….0.16- 1

June 1. 2015………………………………………….0.17 = 1

Decembec 311 2015………………………………….0.19 = 1

Assume that the U.S. dollar is the subsidiary’s functional currency. What balances does a consolidated balance sheet report as of December 31. 2015?

a Marketable equity securities = $16,000 and Inventory = $16.000

b. Marketable equity securities = $17,000 and Inventory = $17.000.

c. Marketable equity securities = $19000 and Inventory = $16,000.

d. Marketable equity securities = $19,000 and Inventory = $19000.

A Clarke Corporation subsidiary buys marketable equity securities and