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

question 101

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 equipment.

• A)$800,000.
• B)$808,000.
• C)$840,000.
• D)$760,000.
• E)$848,000.

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Definitions:

Psychosis

A mental health disorder characterized by a disconnection from reality, which might include hallucinations, delusions, and impaired thoughts.

Panic Attack

A sudden onset of intense fear or discomfort, where four (or more) of the symptoms develop abruptly and peak rapidly.

Manic Episode

A period of abnormally elevated mood, energy, and activity, often characteristic of bipolar disorder.

Psychotic Episode

A period of disturbed behavior and thinking, leading to loss of contact with reality, often characterized by hallucinations or delusions.