Use the Following Information to Answer Bellow Questions
Parkin

Use the following information to answer bellow Questions
Parkin Industries, a U.S. company, acquired a wholly-owned subsidiary, located in Italy, at the beginning of the current year, for €200,000. The subsidiary's functional currency is the euro. The balance sheet of the subsidiary at the date of acquisition was as follows:
$\begin{array}{ll}\text { Assets }\\\text { Current assets } & € 50,000 \\\text { Plant and equipment, net } & \underline{200,000} \\\text { Total assets } & € 250,000\\\\\text { Liabilities and Equity } & \\\text { Liabilities } & € 160,000 \\\text { Capital stock } & 20,000 \\\text { Retained earnings } & 70,000 \\\quad \text { Total liabilities and equity } & € 250,000\end{array}$ Appropriate revaluations of the subsidiary's assets at the date of acquisition are as follows:
•Inventories are undervalued by €1,000. The subsidiary sold the inventory during the current year.
•Equipment is undervalued by €15,000. The equipment has a 10-year remaining life, straight-line.
•Identifiable indefinite life intangible assets, previously unreported, have a fair value of €40,000.
During the current year, there was no impairment of either identifiable intangible assets or goodwill. The exchange rate at the beginning of the year was $1.20/€. The average rate for the year was $1.22/€, and the rate at the end of the year was $1.25/€.
-Consolidation elimination entry (R) , at the date of acquisition, includes a credit to investment in subsidiary in the amount of:

A) $0
B) $108,000
C) $240,000
D) $132,000