Following Are Selected Accounts for Green Corporation and Vega Company

question 81

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 total expenses.

• A) $620,000.
• B) $280,000.
• C) $900,000.
• D) $909,625.
• E) $299,625.

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Definitions:

Freud

An Austrian neurologist and the founder of psychoanalysis, known for his theories about the unconscious mind and the development of personality.

Basic Anxiety

Basic anxiety is a term coined by psychoanalyst Karen Horney, referring to feelings of helplessness and insecurity that arise from a hostile environment.

Horney

A psychoanalyst known for her theories on neurosis, personality, and her critiques of Freud's views on women.

Neurotic Need

Refers to one of the ten specific psychosocial needs identified by psychoanalyst Karen Horney that individuals may develop in response to anxiety stemming from interpersonal relationships.