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Following are selected accounts for Green Corporation and Vega

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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 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;Attachment Preview;Problem Advanced ACCT.doc Download Attachment;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... Show more

 

Paper#25321 | Written in 18-Jul-2015

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