Kennedy Inc. is a Japanese based MNC that conduct a part of its business in Oman. Its Omani sales are denominated in OMR. Its income statement from Oman business at the year-end is shown below:

Income Statement

Particulars	Amount in OMR
Sales	25,000
Less: Cost of goods sold	8,000
Gross Profit	17,000
Operating expenses	11,000
EBIT	6,000
Interest Expenses	2,000
EBT	4,000

Exchange Rates:

(a) The spot exchange rate = 269 JPY/ OMR

(b) The average exchange rate = 272.5 JPY/OMR

(c) The historical exchange rate = 271 JPY/OMR

The parent company wants to convert the functional currency to reporting currency using Monetary- Non- Monetary method. Identify the value of following items when translated into reporting currency? [3 Marks]

a. What is the value of Cost of Goods Sold?

1- 2,152,000 JPY

2- 29.52 JPY

3- 2,168,000 JPY

4- 29.73 JPY

b. What is the value of Operating Expenses?

1- 40.89 JPY

2- 40.366 JPY

3- 2,997,500 JPY

4- 2,959,000JPY

c. What is the value of Interest Expenses?

1- 7.33 JPY

2- 542,000 JPY

3- 545,000 JPY

4- 7.38 JPY