REFERENCE: Ref.03_07 Following Are Selected Accounts for Green Corporation and Vega Company

question 92

Multiple Choice

REFERENCE: Ref.03_07
Following are selected accounts for Green Corporation and Vega Company as of December 31,2010.Several of Green's accounts have been omitted.
Green obtained 100% of Vega on January 1,2006,by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share.On January 1,2006,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 31,2010,consolidated total expenses.

• A)$620,000.
• B)$280,000.
• C)$900,000.
• D)$909,625.
• E)$299,625.

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Definitions:

Euchromatin

A lightly packed form of chromatin (DNA, RNA, and protein complex) that is enriched in gene concentration and is active in transcription.

Barr Bodies

Inactivated X chromosomes found in the nuclei of cells in female organisms, visible as a dense mass, and a key component in dosage compensation.

Promoters

DNA sequences located near the beginning of a gene that signal RNA polymerase where to start transcription.

Frameshift Mutation

A genetic mutation caused by insertions or deletions of a number of nucleotides in a DNA sequence that is not divisible by three, altering the reading frame.