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

question 102

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 retained earnings.

• A)$1,645,375.
• B)$1,350,000.
• C)$1,565,375.
• D)$2,845,375.
• E)$1,265,375.

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Definitions:

Society

A group of individuals involving persistent social interactions, or a large social grouping sharing the same geographical or social territory.

Genetic Pollution

The uncontrolled spread of genetic material beyond its intended area, particularly the introduction of genetically modified organisms (GMOs) into the wild, potentially causing harm to native species and biodiversity.

Splicing Genes

A genetic engineering technique that involves cutting and joining fragments of DNA from different sources to incorporate new traits into an organism.

Health Dangers

Risks or threats to physical and mental well-being that can cause harm or disease.