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

question 26

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 additional paid-in capital.

• A)$210,000.
• B)$75,000.
• C)$1,102,500.
• D)$942,500.
• E)$525,000.

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Definitions:

Indirect Approach

A communication strategy where the main point or request is not presented immediately but is preceded by context, background, or supportive arguments.

Providing Sample

Offering a portion or example of a product or work to demonstrate quality, style, or function.

Reader's Attention

The focus and engagement of a reader with the content, influenced by factors such as interest, readability, and presentation.

Persuasive Claim

An assertion made in an attempt to convince others of its validity, often used in arguments or advertisements.