C is corrent. When remeasuring into US dollars, the current rate will be used for monetary items and for nonmonetary items carried at market. The historical rate is to be used for nonmonetary items carried at cost. The inventory carried at net realizable value should be remeasured using current rates because net realizable value is a market concept. Per the summary below, the items would be translated at $442,000.| Historical rate: | | | Securities at cost | $110,000 | | Inventories at cost | 132,000 | | Current rate: | | | Securities at market | $120,000 | | Inventory at market | 80,000 | | | $442,000 |
A is incorrect. When remeasuring into US dollars, the current rate will be used for monetary items and for nonmonetary items carried at market. The historical rate is to be used for nonmonetary items carried at cost. The inventory carried at net realizable value should be remeasured using current rates because net realizable value is a market concept. Per the summary below, the items would be translated at $442,000.| Historical rate: | | | Securities at cost | $110,000 | | Inventories at cost | 132,000 | | Current rate: | | | Securities at market | $120,000 | | Inventory at market | 80,000 | | | $442,000 |
B is incorrect. When remeasuring into US dollars, the current rate will be used for monetary items and for nonmonetary items carried at market. The historical rate is to be used for nonmonetary items carried at cost. The inventory carried at net realizable value should be remeasured using current rates because net realizable value is a market concept. Per the summary below, the items would be translated at $442,000.| Historical rate: | | | Securities at cost | $110,000 | | Inventories at cost | 132,000 | | Current rate: | | | Securities at market | $120,000 | | Inventory at market | 80,000 | | | $442,000 |
D is incorrect. When remeasuring into US dollars, the current rate will be used for monetary items and for nonmonetary items carried at market. The historical rate is to be used for nonmonetary items carried at cost. The inventory carried at net realizable value should be remeasured using current rates because net realizable value is a market concept. Per the summary below, the items would be translated at $442,000.| Historical rate: | | | Securities at cost | $110,000 | | Inventories at cost | 132,000 | | Current rate: | | | Securities at market | $120,000 | | Inventory at market | 80,000 | | | $442,000 |
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