Following Are Selected Accounts for Green Corporation and Vega Company

question 108

Multiple Choice

Following are selected accounts for Green Corporation and Vega Company as of December 31, 2015. Several of Green's accounts have been omitted. Green acquired 100% of Vega on January 1, 2011, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2011, 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, 2015, consolidated trademark.

• A) $50,000.
• B) $46,875.
• C) $0.
• D) $34,375.
• E) $37,500.

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Definitions:

Job Derichment

The process of reducing the complexity and diversity of a job, leading to decreased employee motivation and satisfaction. Note: The correct term is likely "Job Enrichment," which has the opposite meaning.

Relational Architecture

The structured design and arrangement of relationships within organizations or systems, focusing on how components or individuals relate to each other.

Work Design Characteristics

Elements and features of how jobs are structured and organized that influence employee motivation, satisfaction, and performance.

Motivational Characteristics

Traits or factors that drive an individual's behavior and efforts towards achieving certain goals or tasks.