_____ At 12/31/06, Pivlex had a $60,000 dividend receivable on its books from its foreign subsidiary. The dividend of 100,000 LCUs was declared on 12/28/06, when the direct exchange rate was $.60. The dividend was remitted to Pivlex on 1/8/07, when the direct exchange rate was $.62. The direct exchange rate at 12/31/06 was $.59. Pivlex uses the temporal method of translation. At 12/31/06, Pivlex should
A) Adjust the Dividend Receivable account downward and debit OCI-Translation Adjustment for $1,000.
B) Adjust the Dividend Receivable account downward and debit FX Transac-tion Loss for $1,000.
C) Make no adjustment to the Dividend Receivable account.
D) Adjust the Dividend Receivable account upward by $2,000.
E) None of the above.

Question

_____ At 12/31/06, Pivlex had a $60,000 dividend receivable on its books from its foreign subsidiary. The dividend of 100,000 LCUs was declared on 12/28/06, when the direct exchange rate was $.60. The dividend was remitted to Pivlex on 1/8/07, when the direct exchange rate was $.62. The direct exchange rate at 12/31/06 was $.59. Pivlex uses the temporal method of translation. At 12/31/06, Pivlex should 
A) Adjust the Dividend Receivable account downward and debit OCI-Translation Adjustment for $1,000. 
B) Adjust the Dividend Receivable account downward and debit FX Transac-tion Loss for $1,000. 
C) Make no adjustment to the Dividend Receivable account. 
D) Adjust the Dividend Receivable account upward by $2,000. 
E) None of the above.

Quizplus · Accepted Answer

The Answer of _____ At 12/31/06, Pivlex had a $60,000 dividend receivable on its books from its foreign subsidiary. The dividend of 100,000 LCUs was declared on 12/28/06, when the direct exchange rate was $.60. The dividend was remitted to Pivlex on 1/8/07, when the direct exchange rate was $.62. The direct exchange rate at 12/31/06 was $.59. Pivlex uses the temporal method of translation. At 12/31/06, Pivlex should 
A) Adjust the Dividend Receivable account downward and debit OCI-Translation Adjustment for $1,000. 
B) Adjust the Dividend Receivable account downward and debit FX Transac-tion Loss for $1,000. 
C) Make no adjustment to the Dividend Receivable account. 
D) Adjust the Dividend Receivable account upward by $2,000. 
E) None of the above.

_____ at 12/31/06, Pivlex Had a $60,000 Dividend Receivable on Its