Assume that the U.S. dollar is the subsidiary's functional currency. What balances does a consolidated balance sheet

Question:

Assume that the U.S. dollar is the subsidiary's functional currency. What balances does a consolidated balance sheet report as of December 31, 2013?

1. Marketable equity securities = $16,000 and Inventory = $16,000.

2. Marketable equity securities = $17,000 and Inventory = $17,000.

3. Marketable equity securities = $19,000 and Inventory = $16,000.

4. Marketable equity securities = $19,000 and Inventory = $19,000.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...