Following Are Selected Accounts for Green Corporation and Vega Company

question 60

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 additional paid-in capital.

• A) $210,000.
• B) $75,000.
• C) $1,102,500.
• D) $942,500.
• E) $525,000.

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Definitions:

External Stimuli

Environmental factors or inputs that affect the senses and can influence behavior, reactions, and internal physiological states of an individual.

Internal Stimuli

Signals or events that originate within an organism, triggering psychological or physiological responses.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, and environment.

Circadian Rhythm

The biological clock that cycles daily, regulating physiological and behavioral processes such as sleep-wake patterns and hormone release.