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Following Are Selected Accounts for Green Corporation and Vega Company

question 43

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 land.

Understand the concept of laissez-faire and its implications for government intervention in the economy.

Recognize the mechanisms by which money facilitates specialization and economic efficiency.

Identify the causes and consequences of market failures and the role of government in addressing them.

Explain how economic systems differ in terms of who owns the factors of production and how economic activities are coordinated.

Definitions:

Pollution

The presence of substances in the environment that are harmful to human health, natural ecosystems, or the climate.

Output

The total amount of products or services produced by a company, industry, or economy.

Marginal External Costs

The additional cost imposed on third parties not involved in a transaction or decision, for each additional unit produced or consumed.

Peach Canners

Peach canners are production facilities or workers involved in preserving peaches by canning them, which involves processing, sealing in an airtight container, and sterilizing to extend shelf life.