Hello, Please help with this, my answer is No adjustment necessary, let me know if this is incorrect answer McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash This amount is reflective of Hogans 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 Book Value Fair Value Buildings (10 year life) $ 10,000 $ 8,000 Equipment (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, 2020, what adjustment is necessary for Hogan's Buildings account Multiple Choice $1,440 increase $1,440 decrease $1,600 increase $1,600 decrease No adjustment is necessary

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Question: Hello, Please help with this, my answer is: No adjustment necessary, let me know if this is incorrect answer McGuire Company acquired 90 percent of

Hello,

Please help with this, my answer is: No adjustment necessary, let me know if this is incorrect answer

McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash. This amount is reflective of Hogans 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:

	Book Value		Fair Value
Buildings (10-year life)	$	10,000	$	8,000
Equipment (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, 2020, what adjustment is necessary for Hogan's Buildings account?

Multiple Choice

$1,440 increase.
$1,440 decrease.
$1,600 increase.
$1,600 decrease.
No adjustment is necessary.

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