_____ During 2006, a Foreign Subsidiary Had Fixed Assets of 100,000

Multiple Choice

_____ During 2006, a foreign subsidiary had fixed assets of 100,000 local currency units that were financed with nonindexed local currency debt. Assume that the direct exchange rate decreased by $.07 during 2006, which was the result of foreign inflation. How much would the consolidated stockholders' equity change in U.S. dollars under the current rate method?

A) $-0-
B) $7,000 increase.
C) $7,000 decrease.