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

question 33

Multiple Choice

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.

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Definitions:

Regulated Monopoly

A market structure where there is only one provider of a particular kind of product or service, which is regulated by the government to protect consumers’ interests.

Economic Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, usually visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Pure Competition

Pure competition is a market structure characterized by many sellers and buyers, homogenous products, and free entry and exit from the market, leading to price determination by supply and demand forces.

Socialism

Economic system characterized by government ownership and operation of major industries, such as communications.