B is corrent. The requirement is to determine the currency rate to use to convert the income statement. Per ASC Topic 830, if the functional currency equals the local currency, the current rate method is used. B is corrent because the current rate method requires income statement items (revenues and expenses) to be translated using the weighted-average rate, $1.55.
A is incorrect. The requirement is to determine the currency rate to use to convert the income statement. Per ASC Topic 830, if the functional currency equals the local currency, the current rate method is used. A is incorrect because the current rate method requires income statement items (revenues and expenses) to be translated using the weighted-average rate, $1.55.
C is incorrect. The requirement is to determine the currency rate to use to convert the income statement. Per ASC Topic 830, if the functional currency equals the local currency, the current rate method is used. A is incorrect because the current rate method requires income statement items (revenues and expenses) to be translated using the weighted-average rate, $1.55.
D is incorrect. The requirement is to determine the currency rate to use to convert the income statement. Per ASC Topic 830, if the functional currency equals the local currency, the current rate method is used. D is incorrect because the current rate method requires income statement items (revenues and expenses) to be translated using the weighted-average rate, $1.55.
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