Mcguire company acquired 90 percent of hogan company on january 1, 2010, for $234,000 cash. this amount is reflective of hogan's total 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 december 31, 2011, what adjustment is necessary for hogan's equipment account?

a) $1,800 increase
b) no adjustment is necessary
c) $2,000 increase
d) $1,800 decrease
e) $2,000 decrease