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


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3. McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This. 1 answer below » 3. 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 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, 2011, what View complete question » 3. 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 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, 2011, what total adjustment is necessary for Hogan’s Equipment account? (Hint: The total adjustment is the total effect of Entries [A] and [E] to equipment). McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogans total fair value. Hogans stockholders equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogans net assets revealed the 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 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 total adjustment is necessary for Hogans Equipment account? (Hint: The total adjustment is the total effect of Entries [A] and [E] to equipment). Document Preview: 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
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, 2011, what total adjustment is necessary for Hogan’s Equipment account? (Hint: The total adjustment is the total effect of Entries [A] and [E] to equipment). Attachments: Q-Attachment…..docx View less » Jul 29 2015 03:48 PM

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