Gairdner Limited has the following items in its statement of profit or loss and other comprehensive income for the year ended 30 June 20X4: Revenue FC120 000,
Cost of goods sold FC50 000,
Other expenses FC16 000,
Income tax expense FC20 000.
All items were earned and incurred evenly across the year. The following exchange rates applied:
End of reporting period FC1 = $1.45
Average rate for year FC1 = $1.40
The net profit after tax translated into the presentation currency is:
A) $47 600.
B) $24 286.
C) $23 448.
D) $49 300.

Question

Quizplus · Accepted Answer

Net profit after tax = Revenue - Cost of goods sold - Other expenses - Income tax expense= FC120 000 - FC50 000 - FC16 000 - FC20 000= FC34 000Translated into the presentation currency:= FC34 000 x $1.40= $47 600

Gairdner Limited Has the Following Items in Its Statement of Profit