Figure:
Following Are Selected Accounts for Green Corporation and Vega

question 114

Multiple Choice

Figure:
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2013. Several of Green's accounts have been omitted. $$\begin{array} { l r r } & \text { Green } & \text { Vega } \\\text { Revenues } & \$ 900,000 & \$ 500,000 \\\text { Cost of goods sold } & 360,000 & 200,000 \\\text { Depreciation expense } & 140,000 & 40,000 \\\text { Other expenses } & 100,000 & 60,000 \\\text { Equity in Vega's income } & ? & \\\text { Retained earnings, 1/1/13 } & 1,350,000 & 1,200,000 \\\text { Dividends } & 195,000 & 80,000 \\\text { Current assets } & 300,000 & 1,380,000 \\\text { Land } & 450,000 & 180,000 \\\text { Building (net) } & 750,000 & 280,000 \\\text { Equipment (net) } & 300,000 & 500,000 \\\text { Liabilities } & 600,000 & 620,000 \\\text { Common stock } & 450,000 & 80,000 \\\text { Additional paid-in capital } & 75,000 & 320,000\end{array}$$ 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 revenues.

• A) $1,400,000.
• B) $800,000.
• C) $500,000.
• D) $1,590,375.
• E) $1,390,375.

Define the current account and capital account, and their relationship with the U.S. economy's performance.

Analyze the effects of the gold standard on international monetary policies and exchange rates.

Identify the influence of foreign investment on U.S. interest rates and asset ownership.

Examine the reasons behind the U.S.'s status as the world's leading debtor nation.

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Definitions:

United States

A federal republic consisting of 50 states, a federal district, and several territories. It is located primarily in North America.

Labor Supply Curve

The graphical representation of the relationship between labor supplied and the wage rate in the market.

Labor Market

The labor market is the marketplace in which individuals offer their skills and labor to employers in exchange for wages, salaries, or other compensation.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.