In Consolidation at December 31, 2020, What Adjustment Is Necessary

question 45

Multiple Choice

In consolidation at December 31, 2020, what adjustment is necessary for Hogan's Land account?

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

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Definitions:

Income Distributions

Payments made from a fund or account to investors, which can include dividends from stocks or interest from bonds.

Capital Gain Distributions

The payment of proceeds prompted by an investment fund's sale of stocks and securities, which are passed on to the fund's investors.

Pinnacle's NAV

The Net Asset Value of Pinnacle's investments, representing the total value of the entity's assets minus its liabilities.

Year-End Assets

The value of all assets held by an entity at the conclusion of a financial year.