Answered step by step
Verified Expert Solution
Link Copied!

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 l

and 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Compliance Audits And Plans For Healthcare

Authors: Cherilyn G. Murer, Michael A. Murer, Lyndean Lenhoff Brick, Healthcare Financial Management Association (U. S.)

1st Edition

0070444625, 978-0070444621

More Books

Students also viewed these Accounting questions