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 should be used to translate foreign branch net income. This is because it provides the most accurate representation of the income earned over the course of the year, taking into account fluctuations in exchange rates during that time period. Both the current rate and the rate at the beginning or end of the year may not accurately reflect the income earned due to fluctuations in exchange rates throughout the year.

To Calculate U