A Foreign Subsidiary Is Considered to Be an Integrated Foreign

Multiple Choice

A foreign subsidiary is considered to be an integrated foreign operation (i.e., the functional currency of the foreign operation is the same as the parent) , and its income is earned evenly over the year. It paid its income taxes for the year in two instalments, half on June 30 and half on December 31. What rate(s) should be used to translate the company's income tax expense into Canadian dollars when preparing translated financial statements for the year?

A) Half at the rate at June 30 and half at the rate at December 31.
B) All at the average rate for the year.
C) All at the closing rate for the year.
D) All at the opening rate for the year.