Business, 17.03.2020 23:33, Shavaila18

McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's total 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:

Book value Fair value

Buildings (10 year life) 10,000 8,000

Equipments ( 4 year life) 14,000 18,000

Land 5,000 12,000

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, 2010, what adjustment is necessary for Hogan's Buildings account?

A. $1,620 increase.

B. $1,620 decrease.

C. $1,800 increase.

D. $1,800 decrease.

E. No adjustment is necessary.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:20, salvadorperez26

You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?

Answers: 3

continue

Business, 21.06.2019 21:30, jenny8460

Which of the following statements is true regarding the definition of a fund? a fund is a fiscal entity which is designed to provide reporting that demonstrates conformance with finance-related legal and contractual provisions separately from gaap reporting. a fund exists to assist in carrying on activities and attaining objectives where there are no specific rules or restrictions. a fund is an accounting entity which is designed to enable reporting in conformity with gaap without being restricted by legal or contractual provisions. a fund is a mechanism developed to provide accounting for revenues and expenditures that are subject to certain restrictions separate from revenues and expenditures that are not subject to restrictions.

Answers: 1

continue

Business, 21.06.2019 21:50, mckinzirauch9

Discuss how the resource-based view (rbv) of the firm combines the two perspectives of (1) an internal analysis of a firm and (2) an external analysis of its industry and its competitive environment. include comments on the different types of firm resources and how these resources can be used by a firm to build sustainable competitive advantages.

Answers: 3

continue

Business, 22.06.2019 10:20, Sparkledog

Blue spruce corp. has the following transactions during august of the current year. aug. 1 issues shares of common stock to investors in exchange for $10,170. 4 pays insurance in advance for 3 months, $1,720. 16 receives $710 from clients for services rendered. 27 pays the secretary $740 salary. indicate the basic analysis and the debit-credit analysis.

Answers: 1

continue

Do you know the correct answer?

McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amo...