Darron Co. was formed on January 1, 2009 as a wholly owned foreign subsidiary of a U.S. corporation. Darron's functional currency was the stickle €. The following transactions events occurred during 2007:
Jan. 1 Darron issued common stock for €1,000,000
June 30 Darron paid dividends of € 20,000
Dec. 31 Darron 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 Darron's revenues and expenses for 2009?
• $1= €.48
• $1=€.44
• $1=€.44
• $1=€.42
• $1=€.45