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

question 71

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 equity in Vega's income reported by Green for 2010.

• A)$500,000.
• B)$300,000.
• C)$190,375.
• D)$200,000.
• E)$290,375.

Distinguish between types of unionism based on industry, occupation, and broader social aims.

Understand the ethical frameworks related to labor relations and criticisms of union activities.

Analyze the changing nature of union models in response to societal shifts.

Understand approaches to union avoidance and their implications.

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Definitions:

Marginal Cost

The hike in cost resulting from the creation of one more unit of a product or service.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often leading to higher prices and restricted supply.

Marginal Cost

The hike in overall financial outlay due to producing an extra unit of a product or service.

Total Industry Profit

The cumulative profit earned by all companies operating within a specific industry.