In consolidation at January 1,2009,what adjustment is necessary for Hogan's Buildings account?

Question

Quizplus · Accepted Answer

The Buildings account of Hogan was recorded at a value of $12,000 (given in the question) which is higher than its fair value of $10,000 (given in the problem). Therefore, an adjustment is necessary to reduce the value of the Buildings account by $2,000. A decrease of $2,000 in Hogan's Buildings account would be necessary for the consolidation.

In Consolidation at January 1,2009,what Adjustment Is Necessary for Hogan's