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1. K Inc., a calendar year corporation, acquires 70% of George Company on September 1,2019 and eef an additional 10% on January 1, 2020. Total annual amortization of$6,000 relates to the first acquisition. George reports the following figures for 2020: Revenues $500,000 400,000 300,000 50,000 200,000 Expenses Retained earnings, 1/1/20 Dividends paid Common stock Without regard for this investment, Keefe independently earns $300,000 in net income during 2020. All net income is earned evenly throughout the year. What is the controlling interest in consolidated net income for 2020? A) $380,000 B) $375,200. C) $375,800. D) $376,000. E) S400,000. McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash. This amount is reflective of Hogan's 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: 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. 2. The acquisition value attributable to the noncontrolling interest at January 1, 2019 is: A) $23,400. B) $24,000. C) $24,900 D) $26,000. E) $20,000. 3. In consolidation at January 1, 2019, what adjustment is necessary for Hogan's Buildings account? A) $2,000 increase. B) $2,000 decrease. C) $1,800 increase. D) $1,800 decrease. E) No change. 4. In consolidation at December 31, 2019, what adjustment is necessary for Hogan's Buildings account? A) $1,620 increase. B) $1,620 decrease. C) $1,800 increase D) $1,800 decrease. E) No adjustment is necessary. 5. In consolidation at December 31, 2020, what adjustment is necessary for Hogan's Buildings account? A) $1,440 increase. B) $1,440 decrease. C) $1,600 increase. D) $1,600 decrease. E) No adjustment is necessary. 6. In consolidation at January 1, 2019, what adjustment is necessary for Hogan's Equipment account? A) $4,000 increase B) $4,000 decrease. C) $3,600 increase. D) $3,600 decrease. E) No adjustment is necessary 7 In consolidation at December 31, 2019, 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 is necessary 8. In consolidation at December 31, 2020, what adjustment is necessary for Hogan's Equipment account? A) $2,000 increase. B) $2,000 decrease. C) $1,800 increase. D) $1,800 decrease. E) No adjustment is necessary

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