Darron Co. was formed on January 1, 2009 as a wholly owned foreign subsidiary of a U.S. corporation. Darrons functional currency was the stickle . The following transactions events occurred during 2007:
Jan. 1Darron issued common stock for 1,000,000
June 30Darron paid dividends of 20,000
Dec. 31Darron reported net income of 80,000 for the year
Exchange rates for 2009 were:
Jan. 1$1= .48
June 30$1= .46
Dec. 31$1=.42
Weighted average rate for the year $1=.44
What exchange rate should have been use in translating Darrons revenues and expenses for 2009?
• $37,200
• $22,800
• $30,900
• $32,900
• $40,800