What investment accounting method does hiram use to account

Question

On january 1,2013, hiram corporation acquired all the outstanding stock of terrrier company, by issuing 9000 shares of its $30 par value
Common stock. At the acquisition date, the stock was trading at $50 per share. Additionally.hiram paid $10,000 to sandler o'neal to represent them in the transaction and $10,000 to kpmg for accounting services.

At january 1, 2013, terrier had retained earnings of $230,000 and total book value of $360,000. Your ananlysis of terrier's assets and
Liabilities revealed that its property, plant and equipment was undervalued by $60,000 and has a remaining useful life of 6 years. Terrier
Also has a trademark that you determined has a fair value of$30,000 with a ten year life

Required: prepare the journal entry to record the above purchase, if you decide to keep terrier as a separate entity.

Determine the amount of the excess purchase price and how the excess is allocated

Following are the separate financial statements for hiram and terrier as of december 31,2013. Prepare a consolidation worksheet

For these two companies as of December 31,2013

	Hiram	Terrier
Income statement	Dr	Cr
Revenues	610000	370000
Expenses	385000	220000
Dividend income	5000
net income	230000	150000
Retained earnings
Rfetained earnings boy	880000	230000
Net income	230000	150000
Dividends paid	90000	5000
Retained earnings eoy	1020000	375000
Balance sheet
Cash	130000	15000
Receivables	380000	220000
Inventory	560000	280000
Investment in sub	450000
Land	460000	240000
Property, plant , equipment	920000	220000
total assets	2900000	975000
Liabilities	780000	470000
Common stock	800000	100000
Paid in capital	300000	30000
Retained earnings 12/31/2007	1020000	375000
total liabilities and equity	2900000	975000

What investment accounting method does hiram use to account for its investment in terrier? How do you know?