Problem:
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
building 10 year life.......10000..............8000
equipment 4 year life.....14000...........18000
land ...............................5000 ............12000
Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years.
In consolidation at January 1, 2010, what adjustment is necessary for Hogan's Land, Building, and Equipment accounts? The acquisition value attributable to the non-controlling interest at January 1, 2010 is?