In consolidation at January 1, 2019, what adjustment is necessary for Hogan's Buildings account?
A) $2,000 increase.
B) $2,000 decrease.
C) $1,800 increase.
D) $1,800 decrease.
E) No change.

Question

Quizplus · Accepted Answer

The adjustment necessary for Hogan's Buildings account is a $2,000 decrease. This is typically due to the elimination of intercompany profits or adjustments related to fair value assessments during consolidation.

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