Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2015. Several of Green's accounts have been omitted. Green Vega Revenues
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2015. Several of Green's accounts have been omitted. Green Vega Revenues 900,000 500,000 Cost of goods sold 360,000 200,000 Depreciation expense 140,000 40,000 Other expenses 100,000 60,000 Equity in Vega's income ? Retained earnings 1/1/15 1,350,000 1,200,000 Dividends 195,000 80,000 current assets 300,000 1,380,000 land 450,000 180,000 bulding (net) 750,000 280,000 Equipment (net) 300,000 500,000 Liabilities 600,000 620,000 Common stock 450,000 80,000 Additional paid in capital 75,000 320,000 Green acquired 100% of Vega on January 1, 2011, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2011, 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. 1. compute the december 31,2015, consolidated revenues a.1400000 b. 800000 c.500000 d.1590375 e, 1390375 2. Compute the december 31,2015, consolidated total expenses a. 620000 b 280000 c 900000 d 909625 e 299625 3. compute the december 31,2015, consolidated buildings a 1037500 b 1007500 c 1000000 d 1022500 e 1012500 4. compute the december 31 2015, consolidated equipment a 800000 b 808000 c 840000 d 760000 e 848000 5. compute the december 31,2015 consolidated land a 220000 b 180000 c 670000 d 630000 e 450000 6. compute the december 31,2015 consolidated trademark a 50000 b 46875 c 0 d 34375 e 37500 7 compute the december 31,2015 consolidated common stock a 450000 b 530000 c 555000 d 635000 e 525000 8 compute the december 31,2015 consolidated additional paid in capital a 210000 b 75000 c 1102500 d 942500 e 525000 9 compute the equity in Vega's income to be included in Green's consolidated income statement for 2015 a 500000 b 300000 c 190375 d 200000 e 290375
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started