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McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash. This a value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80 following: Buildings (10-year life) Equipment (4-year life) Land Book Value $10,000 14,000 5,000 Fair Value $ 8,000 18,000 12,000

McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash. This a value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80 following: Buildings (10-year life) Equipment (4-year life) Land Book Value $10,000 14,000 5,000 Fair Value $ 8,000 18,000 12,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash. This amount is reflective of Hogan's total acquisition-date fair value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's net assets revealed the following: Buildings (10-year life) Equipment (4-year life) Land Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years. In consolidation at December 31, 2020, what net adjustment is necessary for Hogan's Patent account? Show Transcribed Text Multiple Choice $4,200. $5,500. Book Value $10,000 14,000 5,000 $8,000. $6,600 Fair Value $ 8,000 18,000 12,000 G (²
Transcribed Image Text:McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash. This amount is reflective of Hogan's total acquisition-date fair value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's net assets revealed the following: Buildings (10-year life) Equipment (4-year life) Land Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years. In consolidation at December 31, 2020, what net adjustment is necessary for Hogan's Patent account? Show Transcribed Text Multiple Choice $4,200. $5,500. Book Value $10,000 14,000 5,000 $8,000. $6,600 Fair Value $ 8,000 18,000 12,000 G (²
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