Answer:
Inventory at December 31th, 2017 = $85,000
Marketable securities at December 31th, $88,000
Explanation:
Inventory $100,000 WON (foreing currency)
securities $100,000 WON (foreing currency)
At April 1 The currenct exchage is 0.85
So their are posted at 100,000 x 0.85 = 85,000 Dollars
Because Inventory is carried at cost under the lower-of-cost-or-net realizable rule. their valuation doesn't change, because the WON never went down the 0.85 so their net realizable was higher than cost so
Inventory at December 31th, 2017 = $85,000
The marketable securities will be adjusted at the current exchange because they are a short term investment
Marketable securities at December 31th, $88,000
