In Consolidation at December 31, 2019, What Adjustment Is Necessary

question 32

Multiple Choice

In consolidation at December 31, 2019, what adjustment is necessary for Hogan's Land account?

• A) $8,000 decrease .
• B) $7,000 increase.
• C) $6,300 increase.
• D) $6,300 decrease.
• E) No adjustment is necessary.

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Definitions:

Opportunity Costs

The loss incurred by not opting for the alternative that stands as the next best choice during decision-making.

Specialization

The process of focusing resources on a limited range of goods or services to gain efficiency or quality advantages.

Comparative Advantage

The capability of an entity to generate a specific product or offer a service with lesser marginal and opportunity costs compared to others.

Trade Benefits

Trade benefits refer to the advantages a country gains from engaging in international trade, such as increased economic growth, diversity of goods, and improved efficiency.