_____ 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 increased by $.04 during 2006, which was the result of domestic inflation. How much would the consolidated stockholders' equity change in U.S. dollars under the temporal method?

A) $-0-
B) $4,000 increase.
C) $4,000 decrease.