McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash....
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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, 2019, what adjustment is necessary for Hogan's Buildings account?
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