TB MC Qu. 04-53 McGuire Company acquired 90 percent of Hogan... 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: Book Value $10,000 Fair Value $ 8,000 Buildings (10-year life) Equipment (4-year life) Land 14,000 5,000 18,000 12,000 Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years. In consolidation at December 31, 2019, what net adjustment is necessary for Hogan's Patent account? $8,800. $7,000. $7,700. $5,600