To calculate U.S.tax,what exchange rate must be used to translate foreign branch net income?

Question

Quizplus · Accepted Answer

The average rate for the year is the most appropriate choice as it represents a more accurate reflection of the actual exchange rates that were in effect during the year and is therefore more likely to provide a fair and accurate measure of the foreign branch's net income. Using the current rate or the rate at the beginning or end of the year may not provide an accurate reflection of the actual exchange rates that were in effect during the period, and may result in distortions in the measurement of income.

To Calculate U