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Mcguire company acquired 90 percent of hogan company

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42. McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000cash. This amount is reflective of Hogan's total fair value. Hogan's stockholders' equity consistedof common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's netassets revealed the following:Any excess consideration transferred over fair value is attributable to an unamortized patent witha useful life of 5 years.In consolidation at December 31, 2010, what net adjustment is necessary for Hogan's Patentaccount?A. $5,600.B. $8,800.C. $7,000.D. $7,700.E. No adjustment is necessary.
43. McGuire Company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000cash. This amount is reflective of Hogan's total fair value. Hogan's stockholders' equity consistedof common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's netassets revealed the following:Any excess consideration transferred over fair value is attributable to an unamortized patent witha useful life of 5 years.In consolidation at December 31, 2011, what net adjustment is necessary for Hogan's Patentaccount?

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Term
Fall
Professor
NoProfessor
Tags
Generally Accepted Accounting Principles, Cale Corp

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