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What adjustment should be made to the consolidated financial statements for the year ended December 31, 20X6, for the fair value increment related to the capital assets?
A) The retained earnings at January 1, 20X6, will be increased by $20,000.
B) Amortization expense on the capital assets for 20X6 will be increased by $2,500.
C) Amortization expense on the capital assets for 20X6 will be increased by $7,500.
D) Retained earnings at the end of 20X6 will be increased by $12,500.
On May 26, 2024