Advanced Accounting

42 . 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: Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years. In consolidation at January 1, 2010, what adjustment is necessary for Hogan's Buildings account? A. $2,000 increase. B. $2,000 decrease. C. $1,800 increase. D. $1,800 decrease. E. No change. 43 . 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: 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. 44 . 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: 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, 2011, what adjustment is necessary for Hogan's Buildings account? A. $1,440 increase. B. $1,440 decrease. C. $1,600 increase. D. $1,600 decrease. E. No adjustment is necessary. 45 . 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: Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years. In consolidation at January 1, 2010, what adjustment is necessary for Hogan's Equipment account? A. $4,000 increase. B. $4,000 decrease. C. $3,600 increase. D. $3,600 decrease. E. No adjustment is necessary.

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