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Category > Accounting Posted 29 Jul 2017 My Price 8.00

Green Corporation

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 retained earnings.

I'M PRETTY SURE THE ANSWER IS a. $1,645,375, BUT I NEED TO KNOW HOW TO GET THIS ANSWER

a. $1,645,375

b. $1,350,000

c. $1,565,375

d. $1,840,375

e. $1,265,375

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 02:07 PM My Price 8.00

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