What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2020?

a. $16,000

b. $17,000

c. $18,000

d. $19,000

Newberry, Inc., whose reporting currency is the U.S. dollar, has a subsidiary in Argentina, whose functional currency also is the U.S. dollar. The subsidiary acquires inventory on credit on November 1, 2020, for 100,000 pesos that is sold on January 17, 2021, for 130,000 pesos. The subsidiary pays for the inventory on January 31, 2021. 

Currency exchange rates are as follows:

November 1, 2020 . . . . . . . . . . . . . . . . . . . . . $0.16 = 1 peso

December 31, 2020 . . . . . . . . . . . . . . . . . . . .   0.17 = 1

January 17, 2021 . . . . . . . . . . . . . . . . . . . . . .   0.18 = 1

January 31, 2021 . . . . . . . . . . . . . . . . . . . . . .   0.19 = 1