Mcguire company acquired 90 percent of hogan company on

Assignment Help Accounting Basics

Reference no: EM13574760

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

a) $3,000 increase

b) $3,000 decrease

c) $2,700 increase

d) $2,700 decrease

e) No adjustment necessary

Reference no: EM13574760

Questions Cloud

The class average on a statistics test is 60 with a : the class average on a statistics test is 60 with a standard deviation of 6. what minimum grade must a student obtain

Barretts fashions forecasts sales of 125000 for the quarter : barretts fashions forecasts sales of 125000 for the quarter ended december 31. its gross profit rate is 20 of sales and

The hills company purchased inventory from a foreign : the hills company purchased inventory from a foreign supplier on november 30 2013 for 80000 local currency units lcu.

A company expects its september sales to be 15 higher than : a company expects its september sales to be 15 higher than its august sales of 140000. purchases were 75000 in august

Mcguire company acquired 90 percent of hogan company on : mcguire company acquired 90 percent of hogan company on january 1 2010 for 234000 cash. this amount is reflective of

Raynolde company uses a periodic inventory system at the : raynolde company uses a periodic inventory system. at the end of 2007 the following information is availablepurchases

Gilchrist manufacturing has a current ratio of 31 on : effect of transactions on current ratio and working capitalgilchrist manufacturing has a current ratio of 31 on

Use the library internet and other available resources to : use the library internet and other available resources to develop a 6-8 page research proposal that includes the

The following percentages apply to walton company for 2007 : the following percentages apply to walton company for 2007 and 2008.20082007sales100.0100.0cost of goods

User Account

All Pages