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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fada6dc06-ec53-48ce-8e70-8087b4c6a6e1%2F91a2e294-3a06-41f3-8097-c1a0c82c9e7f%2Fw781lv7_processed.jpeg&w=3840&q=75)
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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