Following Are Selected Accounts for Green Corporation and Vega Company

question 104

Multiple Choice

Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted. Green acquired 100% of Vega on January 1, 2019, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2019, 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.Compute the December 31, 2023, consolidated buildings.

• A) $1,037,500.
• B) $1,007,500.
• C) $1,000,000.
• D) $1,022,500.
• E) $1,012,500.

---

Definitions:

IQ Tests

Uniform evaluations aimed at measuring the cognitive abilities and intelligence of humans.

Intellectual Disability

A term used to describe individuals who exhibit limitations in intellectual functioning and adaptive behavior, originating before the age of 18.

Profound

Having deep insight or understanding; penetrating beyond what is superficial or obvious.

Intelligence Tests

Standardized measures designed to assess various aspects of a person's intellectual capabilities, such as logical reasoning, problem-solving, and verbal comprehension.