Following Are Selected Accounts for Green Corporation and Vega Company

question 9

Multiple Choice

Following are selected accounts for Green Corporation and Vega Company as of December 31, 2013. Several of Green's accounts have been omitted.

Green acquired 100% of Vega on January 1, 2009, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2009, 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 to be included in Green's consolidated income statement for 2013.

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

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Definitions:

Avoidant Attachment

The attachment pattern in which infants are indifferent to where their mother is sitting, may or may not cry when their mother leaves, are as likely to be comforted by strangers as by their mother, and are indifferent when their mother returns to the room.

Strange Situation

A psychological experiment designed by Mary Ainsworth to assess attachment styles of infants by observing their reactions to separations and reunions with their caregivers.

Strange Situation Procedure

A research method developed by Mary Ainsworth to assess patterns of attachment between a child and their caregiver through a series of introductions, separations, and reunions.

Disorganized Attachment

The insecure attachment pattern in which infants seem to lack a coherent method for dealing with stress. They may behave in seemingly contradictory ways, such as screaming for their mother but moving away when she approaches. In extreme cases, they may seem dazed.