McGuire Company acquired 90 percent of Hogan Company on January 1, 2022, for $234,000 cash. This amount is reflective of Hogans 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:

	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

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, 2022, what adjustment is necessary for Hogan's Patent account?

Multiple Choice

No adjustment is necessary.

$7,000

$6,300

$9,900

$11,000