All amounts on the U.S. tax return must be stated in U.S. dollars. When taxpayers abroad receive income in foreign currency, you must convert the foreign income into U.S. dollars.

U.S. exchange rates are stated in two ways:

• Foreign currency to one U.S. dollar: 0.74855 Euro = 1 U.S. dollar
• U.S. dollar to one unit of the foreign currency: 1.33592 U.S. dollar = 1 Euro

Based on the exchange rate of 0.74855 Euros to one U.S. dollar, the value of Ryan's 3,000 Euros is 3,000 divided by 0.74855, which is $4,007.75.