XYZ Corporation, a U

XYZ Corporation, a U.S. parent firm, has a wholly owned sales affiliate, ABC Ltd., in the United Kingdom. The affiliate was established to service to the local market. Assume that:
1) the functional currency of ABC is the pound
2) the reporting currency is the dollar
3) the initial exchange rate $1.00 = £0.67
ABC's nonconsolidated balance sheets and the footnotes to the financial statements indicate that ABC owes the parent firm £200,000. Assume that, XYZ had made an investment of $500,000 in the affiliate. Under FASB 52, the intercompany debt and investment will appear on the consolidated balance sheet as

A) £200,000.
B) $201,493.
C) $298,507.
D) none of the above