_____ on 12/31/06, Polbex's Payable to a Foreign Vendor Was

Multiple Choice

_____ On 12/31/06, Polbex's payable to a foreign vendor was properly reported at $294,000 in its balance sheet after recording an $8,000 downward adjustment as a result of a change in the exchange rate. On 1/7/07, the settlement required $295,000. Polbex owns a foreign subsidiary that has a foreign currency as its functional currency. For 2006, an adverse result of $60,000 occurred in translation for this subsidiary. What amount should be reported in earnings in the 2006 consolidated income statement?

A) $5,000 loss.
B) $8,000 gain.
C) $52,000 loss.
D) $60,000 loss.
E) $68,000 loss.