A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2013 in local currency units (LCU):
Inventory at cost...........................................................320,000 LCU
Inventory at replacement cost............................................300,000
Inventory at net realizable value........................................420,000
Inventory at net realizable value
less normal profit margin................................................400,000
The following exchange rates are given for 2013:
4th quarter average, 2013................................................$1.43 = 1 LCU
December 31, 2013.........................................................1.42 = 1 LCU
Compute the December 31, 2013, inventory balance using the current rate method.
a) $457,600.
b) $568,000.
c) $596,400.
d) $426,000.
e) $454,400.