That US parent company ABC has a subsidiary XYZ in Outer Mongolia. XYZ's total assets are as follows in Mongolian marks:
• cash and receivables 500,000
• inventory 500,000
• fixed assets (net) 900,000
The relevant exchange rates are:
• OMM 1.6800 closing rate on the balance sheet date
• OMM 1.5500 exchange rate when the fixed assets were acquired
• OMM 1.6300 average exchange rate for the period
• OMM 1.6600 average exchange rate when ending inventory was acquired
What is the total value of assets if the functional currency is the Outer Mongolian mark?
a. $1,130,952
b. $1,179,469
c. $1,175,883
d. $1,185,012