4. The Clark Company owns a foreign subsidiary that had net income for the year ended December 31, 2016, of 4,800,000 local currency units, which was appropriately translated into $800,000.

On October 15, 2016, when the rate of exchange was 5.7 LCU to $1, the foreign subsidiary paid a dividend to Clark of 2,400,000 LCU. The dividend represented the net income of the foreign subsidiary for the six months ended June 30, 2016, during which time the weighted average exchange rate was 5.8 LCU to $1.

The rate of exchange in effect at December 31, 2016, was 5.9 LCU to $1. What rate of exchange should be used to translate the dividend for the December 31, 2016, financial statements?

a 5.7 LCU to $1 b 5.8 LCU to $1 c 5.9 LCU to $1 d 6.0 LCU to $1