A Foreign Subsidiary Uses the First-In First-Out Inventory Method $\text { The following exchange rates are given for } 2011$

A foreign subsidiary uses the first-in first-out inventory method. The following inventory balances are given at December 31, 2011 in local currency units (LCU) : $\begin{array}{ll}\text { Inventory at cost } & 320,000 \mathrm{LCU} \\\text { Inventory at replacement cost } & 300,000 \\\text { Inventory at net realizable value } & 420,000 \\\text { Inventory at net realizable value } &\\\text { less normal profit margin }&400,000\end{array}$
$\text { The following exchange rates are given for } 2011$
$\begin{array} { l } \text { \( 4^{\text {th }} \) quarter average, 2011} &\$ 1.43=1 \mathrm{LCU}\\ \text { December 31.2011}&1.42=1 \mathrm{LCU}\\\end{array}$

-Compute the December 31, 2011, inventory balance using the lower of cost or market method under the temporal method.

A) $429,000.
B) $457,600.
C) $596,400.
D) $568,000.
E) $426,000.