Question

The exchange gain or loss on repatriated funds from a foreign branch is calculated by multiplying the nominal amount of the funds by: Group of answer choices the difference between the exchange rate at the beginning of the year and the exchange rate at the end of the year. the difference between the exchange rate on the date of repatriation and the exchange rate used to translate the branch's pretax income. the difference between the current exchange rate and the exchange rate at the end of the year. the difference between the exchange rate on the date of repatriation and the exchange rate at the beginning of the year.

Answer 1

Answer: the difference between the exchange rate on the date of repatriation and the exchange rate used to translate the branch's pretax income.

Explanation:

Repatriation simply means converting of foreign currencies into local ones. Earning of income in foreign currencies, by a comoany are typically subject to risk regarding foreign exchange which could bring about a loss.

It should be noted that the exchange gain or loss on repatriated funds from a foreign branch is calculated when the nominal amount of the funds is multiplied by the difference between the exchange rate on the date of repatriation and the exchange rate used to translate the branch's pretax income.