In consolidation at January 1, 2019, what adjustment is necessary for Hogan's Equipment account?
A) $4,000 increase.
B) $4,000 decrease.
C) $3,600 increase.
D) $3,600 decrease.
E) No adjustment is necessary.

Question

Quizplus · Accepted Answer

The adjustment necessary for Hogan's Equipment account is a $4,000 increase, likely due to the consolidation process requiring the recognition of fair value adjustments or other accounting treatments that impact the equipment's recorded value.

In Consolidation at January 1, 2019, What Adjustment Is Necessary