Darron Co. was formed on January 1, 2018 as a wholly owned foreign subsidiary of a U.S. corporation. Darron's functional currency was the stickle (). The following transactions and events occurred during 2018:

Jan.1Darron issued common stock for 1,000,000.June30Darron paid dividends of 20,000.Dec.31Darron reported net income of 80,000 for the year.

Exchange rates for 2018 were:

Jan.11=$0.48June 301=$0.46Dec.311=$0.42Weighted average rate for the year1=$0.44What exchange rate should have been used in translating Darron's revenues and expenses for 2018?

Multiple Choice

• 1 = $0.48.
• 1 = $0.44.
• 1 = $0.46.
• 1 = $0.42.
• 1 = $0.45.