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

question 64

Multiple Choice

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

• A) $2,000 increase.
• B) $2,000 decrease.
• C) $1,800 increase.
• D) $1,800 decrease.
• E) No adjustment is necessary.

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Definitions:

Pre-Move House Hunting

Expenses incurred while searching for a new residence before relocating for a job, which may be deductible or reimbursable under certain circumstances.

Deductible Moving Expense

Expenses related to moving for work that exceed a certain distance and time requirement, which can be deducted for tax purposes, but currently limited to members of the Armed Forces.

Health Savings Account

A savings vehicle that permits people enrolled in high-deductible health insurance plans to accumulate funds without paying taxes, specifically for healthcare costs.

Contribution Amounts

Contribution Amounts refer to the sums of money contributed to a cause, project, retirement plan, or other entities, often eligible for tax deductions or benefits.