Following Are Selected Accounts for Green Corporation and Vega Company

question 100

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 December 31, 2013, consolidated equipment.

• A) $800,000.
• B) $808,000.
• C) $840,000.
• D) $760,000.
• E) $848,000.

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Definitions:

Hostile Environment

An unwelcoming or unpleasant atmosphere, especially in the workplace, which may involve harassment or discrimination.

Hedonist

A person who believes that the pursuit of pleasure or happiness is the most important goal in life.

Might-Equals-Right

A belief or principle that power and strength justify moral superiority or rightful authority.

Self-Serving

Behaviors or attitudes that prioritize an individual's own interests, benefits, or welfare over those of others.