Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 4

On January 1, 2014, Brendan, Inc., reports net assets of $760,000 although equipment (with a 4-year remaining life) having a book value of $440,000 is worth $500,000 and an unrecorded patent is valued at $45,000. Hope Corporation pays $692,000 on that date for an 80 percent ownership in Brendan. If the patent is to be written off over a 10-year period, at what amount should it be reported on consolidated statements at December 31, 2015
A) $28,800.
B) $32,400.
C) $36,000.
D) $40,500.