Following Are Selected Accounts for Green Corporation and Vega Company

question 56

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.

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Definitions:

Visual Agnosias

A condition involving the inability to recognize or identify objects despite having functional vision.

Visual Information

Information that is perceived through the sense of sight and processed by the visual system.

Interpretation

The process of explaining the meaning of something or understanding something in a specific way.