Figure:
Following Are Selected Accounts for Green Corporation and Vega

question 120

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 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:

Politically

In a manner related to the government, public affairs, or the administration of the state or other political unit.

Misuse Of Resources

The improper, inefficient, or unethically handling of materials, time, or assets, often resulting in waste or loss.

Organizational Culture

The common principles, convictions, and standards that affect how organization members engage with one another and with stakeholders.

Emotional Withdrawal

The process of detaching or distancing oneself emotionally from a situation or relationship.