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Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted. Green...

"Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted.
Green Vega
Revenues $900,000 $500,000
cost of goods sold 360,000 200,000
Depreciation expense 140,000 40,000
Other expenses 100,000 60,000
Equity Vega’income ?
Retained earnings,1/10 1,350,000 1,200,000
Dividends 195,000 80,000
Current assets 300,000 1,380,000
Land 450,000 180,000
Building (net) 750,000 280,000
Equipment (net) 300,000 500,000
Liablilities 600,000 620,000
Common stock 450,000 80,000
Additional paid-in capital 75,000 320,000



Green obtained 100% of Vega on January 1, 2006, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2006, Vega's land was undervalued by $40,000, its buildings were overvalued by $30,000 and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10-year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment.

5. Compute the book value of Vega at January 1, 2006.

A. $997,500
B. $857,500
C. $1,200,000
D. $1,600,000
E. $827,500




6. Compute the December 31, 2010, consolidated revenues.
A. $1,400,000
B. $800,000
C. $500,000
D. $1,590,375
E. $1,390,375




7. Compute the December 31, 2010, consolidated total expenses.
A. $620,000
B. $280,000
C. $900,000
D. $909,625
E. $299,625



8. Compute the December 31, 2010, consolidated buildings.
A. $1,037,500
B. $1,007,500
C. $1,000,000
D. $1,022,500
E. $1,012,500




9. Compute the December 31, 2010, consolidated equipment.
A. $800,000
B. $808,000
C. $840,000
D. $760,000
E. $848,000



10. Compute the December 31, 2010, consolidated land.
A. $220,000
B. $180,000
C. $670,000
D. $630,000
E. $450,000

Difficulty: Medium

11. Compute the December 31, 2010, consolidated trademark.
A. $50,000
B. $46,875
C. $0
D. $34,375
E. $37,500



12. Compute the December 31, 2010, consolidated common stock.
A. $450,000
B. $530,000
C. $555,000
D. $635,000
E. $525,000


13. Compute the December 31, 2010, consolidated additional paid-in capital.
A. $210,000
B. $75,000
C. $1,102,500
D. $942,500
E. $525,000


14. Compute the December 31, 2010 consolidated retained earnings.
A. $1,645,375
B. $1,350,000
C. $1,565,375
D. $2,845,375
E. $1,265,375



15. Compute the equity in Vega's income reported by Green for 2010.
A. $500,000
B. $300,000
C. $190,375
D. $200,000
E. $290,375
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted. Green obtained 100% of Vega on January 1, 2006, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2006, Vega's land was undervalued by $40,000, its buildings were overvalued by $30,000 and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10-year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment. 5. Compute the book value of Vega at January 1, 2006. A. $997,500 B. $857,500 C. $1,200,000 D. $1,600,000 E. $827,500 6. Compute the December 31, 2010, consolidated revenues. A. $1,400,000 B. $800,000 C. $500,000 D. $1,590,375 E. $1,390,375
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7. Compute the December 31, 2010, consolidated total expenses. A. $620,000 B. $280,000 C. $900,000 D. $909,625 E. $299,625 8. Compute the December 31, 2010, consolidated buildings. A. $1,037,500 B. $1,007,500 C. $1,000,000 D. $1,022,500 E. $1,012,500 9. Compute the December 31, 2010, consolidated equipment. A. $800,000 B. $808,000 C. $840,000 D. $760,000 E. $848,000 10. Compute the December 31, 2010, consolidated land. A. $220,000 B. $180,000 C. $670,000 D. $630,000 E. $450,000 Difficulty: Medium 11. Compute the December 31, 2010, consolidated trademark. A. $50,000 B. $46,875 C. $0 D. $34,375 E. $37,500
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