Following Are Selected Accounts for Green Corporation and Vega Company

question 67

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 revenues.

• A)$1,400,000.
• B)$800,000.
• C)$500,000.
• D)$1,590,375.
• E)$1,390,375.

---

Definitions:

Potential Output

Potential output is the maximum amount of goods and services an economy can produce when it fully uses its available resources.

Köhler Effect

A phenomenon in social psychology where less capable members of a group are motivated to increase their effort on a task to match the performance levels of more capable members.

Productive Individuals

People who are consistently able to achieve high output within the expected timeframes, contributing significantly to their teams or projects.

Dominant Responses

The most common or likely reactions individuals exhibit in a given situation, often influenced by past experiences, instincts, or social norms.