Following Are Selected Accounts for Green Corporation and Vega Company

question 107

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 retained earnings.

• A)$1,645,375.
• B)$1,350,000.
• C)$1,565,375.
• D)$1,840,375.
• E)$1,265,375.

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Definitions:

730 Nm

A wavelength of light in the near-infrared spectrum, often used in photosynthesis research or medical therapies.

Methyl Salicylate

An organic ester naturally produced by many plants and used as a fragrance, flavoring agent, and in pain relief medications.

Jasmonates

Plant hormones that play a pivotal role in stress responses, growth, and developmental processes, including fruit ripening and leaf senescence.

Systemin

A plant peptide hormone involved in defense responses, signaling systemic responses to local damage or attack.