K Corporation's Branch Operation in Sweden Had Net Profits for 2012

question 6

Multiple Choice

K Corporation's branch operation in Sweden had net profits for 2012 of 300,000 Kronas.It received 30,000 Kronas from the branch at the end of each quarter.Assume that the exchange rates of Swedish Kronas per U.S.dollar were $$\begin{array} {lll } 1 / 1 / 2012 = 7.40 & 9 / 30 / 2012 = 7.60 \\3 / 31 / 2012 = 7.40 & 12 / 31 / 2012 = 7.60 \\6 / 30 / 2012 = 7.50 & 2012 \text { weighted } = 7.50\end{array}$$ Under the profit and loss method, K Corporation reports branch profits of (the answer is rounded to the nearest dollar.)

• A)$40,540
• B)$40,000
• C)$39,949
• D)$39,474

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