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Question: On January 1, 2020, Grand Haven, Inc.,


On January 1, 2020, Grand Haven, Inc., reports net assets of $760,000 although equipment (with a four-year remaining life) having a book value of $440,000 is worth $500,000 and an unrecorded patent is valued at $45,000. Van Buren Corporation pays $692,000 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren’s consolidated balance sheet at December 31, 2021?
a. $28,000
b. $35,000
c. $36,000
d. $40,000

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