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.

---

Definitions:

Intellectual Ability

involves the capacity to perform mental activities such as reasoning, problem-solving, and abstract thinking.

Intelligence Quotient

A measure of a person's intellectual abilities compared to the average population, typically computed from the results of standardized tests.

Katz's Skills Model

A leadership model proposed by Robert Katz that suggests three core leadership skills: technical, human, and conceptual.

Tax Law

The legal domain encompassing rules, policies, and procedures that oversee the legal process regarding taxation.