_____ at 12/31/06, Pivax Had a $60,000 Dividend Receivable from Its

Multiple Choice

_____ At 12/31/06, Pivax had a $60,000 dividend receivable from its foreign subsidiary. The dividend of 100,000 LCU is denominated in LCU and was declared on 12/28/06, when the direct exchange rate was $.60. The dividend was remitted to Pivax on 1/8/07, when the direct exchange rate was $.62. The direct exchange rate at 12/31/06 was $.59. Pivax uses the foreign currency unit of measure approach. At 12/31/06, Pivax 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 Foreign Currency Transaction 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.