Figure:
Following Are Selected Accounts for Green Corporation and Vega

question 83

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 land.

• A) $220,000.
• B) $180,000.
• C) $670,000.
• D) $630,000.
• E) $450,000.

---

Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance each other.

Payoff Matrix

A table that displays the potential outcomes and strategies for each player in a game, used in game theory to determine the best strategies and predict the actions of the participants.

Duopoly

A market structure dominated by two companies, often resulting in closely competitive or collaborative strategies between them.

High-price Strategy

A pricing approach where goods or services are sold at a higher price point, typically justified by branding, quality, or unique features.