Question - Fairhaven Company acquired 90% of Linden Company on January 1, 20X3, for $234,000 cash. Louden's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Louden's net assets revealed the following.
Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years.
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
In consolidation at January 1, 20X3, what adjustment is necessary for Linden's buildings account?