Following Are Selected Accounts for Green Corporation and Vega Company

question 40

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 retained earnings.

• A) $1,645,375.
• B) $1,350,000.
• C) $1,565,375.
• D) $1,840,375.
• E) $1,265,375.

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Definitions:

Magnet Status Hospitals

Hospitals recognized for nursing excellence and high-quality patient care by the American Nurses Credentialing Center's Magnet Recognition Program.

Adverse Events

Unintended and harmful events or reactions caused by medical management or health interventions, rather than by the underlying condition of the patient.

Patient Education

Teaching patients about their health conditions, treatment options, and lifestyle adjustments to promote optimal disease management and prevention.

Care Coordination

The deliberate organization of patient care activities between two or more participants involved in a patient's care to facilitate the appropriate delivery of health care services.