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

question 104

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 land.

• A)$220,000.
• B)$180,000.
• C)$670,000.
• D)$630,000.
• E)$450,000.

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Definitions:

Biological Need

Fundamental physiological requirements essential for maintaining life, such as food, water, and shelter.

Reinforcer

Any stimulus that increases the likelihood of a preceding behavior to occur again by either presenting a positive stimulus or removing a negative one.

Punisher

Anything that follows a response and weakens it or decreases the probability that it will occur.

Strengthens

To make or become stronger or more resilient, often used in the context of physical, emotional, or mental attributes.