McGuire Company Acquired 90 Percent of Hogan Company on January

question 115

Multiple Choice

McGuire Company acquired 90 percent of Hogan Company on January 1, 2014, 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: $$\begin{array} { l c c } & \text { Book Value } & \text { Fair Value } \\\text { Buildings (10-year life) } & \$ 10,000 & \$ 8,000 \\\text { Equipment (4-year life) } & 14,000 & 18,000 \\\text { Land } & 5,000 & 12,000\end{array}$$ 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, 2014, 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.

Evaluate the protection of creditor's interests during the bankruptcy and insolvency process.

Discuss alternatives to bankruptcy and their benefits.

Understand the concept of selection bias and its impact on research findings.

Differentiate between correlation and causation in statistical studies.

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Definitions:

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A neurological disorder marked by sudden recurrent episodes of sensory disturbance, loss of consciousness, or convulsions, associated with abnormal electrical activity in the brain.

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An ethnic group from East and Southeast Asia with significant populations in China, Vietnam, Laos, Thailand, and significant diaspora communities worldwide, especially in the United States.

Health Outcomes

The results of healthcare practices and interventions, measuring the impact on a patient's health status.

Human Genome Project

An international scientific research project aimed at mapping and understanding all the genes of human beings.