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Incremental Budget Wood County uses an incremental approach to budgeting. The 2016 cash budget for the Wood County Department of Motor Vehicles is presented as

Incremental Budget Wood County uses an incremental approach to budgeting. The 2016 cash budget for the Wood County Department of Motor Vehicles is presented as follows:

Supplies $22,500
Temporary and seasonal wages 34,500
Wages of full-time employees 277,500
Supervisor salaries 70,500
Rent 39,000
Insurance 21,000
Utilities 23,000
Miscellaneous 16,500
Contingencies and equipment 52,500
Total $557,000

Required Prepare an incremental cash budget for 2017, assuming the planned total budget increase is 2.5 percent. Budget details include a budget increment for salaries and wages of 4 percent, no change in rent, and 2 percent increases in the budget for supplies and miscellaneous. Utility companies have received approvals for rate increases amounting to 4 percent and insurance companies have announced an increase in premiums of 6 percent. (Hint: The Contingencies and equipment 2017 budget is a plug.)

QUESTION: What is Contingencies and equipment?

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