Following Are Selected Accounts for Green Corporation and Vega Company

question 52

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 trademark.

• A) $50,000.
• B) $46,875.
• C) $0.
• D) $34,375.
• E) $37,500.

---

Definitions:

Kirkpatrick's Model

A method for assessing the effectiveness of training programs through four distinct levels: Reaction, Learning, Behavior, and Results, emphasizing the importance of evaluating multiple aspects of training.

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) by the cost of the investment.

Training Evaluation

The process of assessing the effectiveness of a training program, often using criteria such as learner satisfaction, learning achieved, and behavior change.

Break-Even

The point at which total costs and total revenue are equal, leading to no net loss or gain for a business.