Following Are Selected Accounts for Green Corporation and Vega Company

question 87

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.

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Definitions:

Generative Cell

In the development of pollen grains, the cell that divides to form the sperm cells necessary forplant fertilization.

Sepals

The part of a flower that typically acts as a protective covering for the flower in bud form and supports the petals once they bloom.

Outermost Whorl

The outermost circle or arrangement of parts in a flower, typically consisting of sepals.

Ovule

The structure in seed plants that develops into a seed after fertilization, containing a female gametophyte and the egg cell.