Question $4$

McGuire Company acquired $90$ percent of Hogan Company on January $1,2019,$ for $$234,000$ cash. This amount is reflective of Hogan's 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:

Fair Value

$8,000$

$18,000$

$12,000$

Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of $5$ years.

At the time of acquisition, how much was attributed to patents?

$ $11,000$

This was a bargain purchase

$$20,000$

$$9,000$