Following Are Selected Accounts for Green Corporation and Vega Company

question 30

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:

State Development

The process through which a geographical area with a defined territory evolves organizational structures to govern and manage its populace and resources.

Tikal

An ancient Mayan city located in the rainforests of what is now northern Guatemala, known for its monumental architecture and significant archaeological sites.

Overland Trade Route

A path or route used for the transportation of goods and trade over land, as opposed to sea or air, historically significant for economic and cultural exchanges.

Tikal Project

An extensive archaeological effort focusing on the investigation and preservation of Tikal, one of the largest urban centers of the ancient Maya civilization.