Mortimer Limited Has the Following Items in Its Statement of Profit

question 26

Multiple Choice

Mortimer Limited has the following items in its statement of profit or loss and other comprehensive income:
Revenue FC60 000,
Cost of goods sold FC25 000,
Interest expense FC8 000,
Income tax expense FC10 000.
All items arose evenly across the year. The following exchange rates applied:
End of reporting period FC1 = $0.80
Average rate for year FC1 = $0.75
The net profit after tax translated into the presentation currency is:

• A) $12 750;
• B) $13 600;
• C) $21 250;
• D) $26 667.