"Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. 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 Vega?income ? Retained earnings,1/10 1,350,000 1,200,000 Dividends 195,000 80,000 Current assets 300,000 1,380,000 Land 450,000 180,000 Building (net) 750,000 280,000 Equipment (net) 300,000 500,000 Liablilities 600,000 620,000 Common stock 450,000 80,000 Additional paid-in capital 75,000 320,000 Green obtained 100% of Vega on January 1, 2006, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2006, 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. 5. Compute the book value of Vega at January 1, 2006. A. $997,500 B. $857,500 C. $1,200,000 D. $1,600,000 E. $827,500 6. Compute the December 31, 2010, consolidated revenues. A. $1,400,000 B. $800,000 C. $500,000 D. $1,590,375 E. $1,390,375 7. Compute the December 31, 2010, consolidated total expenses. A. $620,000 B. $280,000 C. $900,000 D. $909,625 E. $299,625 8. Compute the December 31, 2010, consolidated buildings. A. $1,037,500 B. $1,007,500 C. $1,000,000 D. $1,022,500 E. $1,012,500 9. Compute the December 31, 2010, consolidated equipment. A. $800,000 B. $808,000 C. $840,000 D. $760,000 E. $848,000 10. Compute the December 31, 2010, consolidated land. A. $220,000 B. $180,000 C. $670,000 D. $630,000 E. $450,000 Difficulty: Medium 11. Compute the December 31, 2010, consolidated trademark. A. $50,000 B. $46,875 C. $0 D. $34,375 E. $37,500 12. Compute the December 31, 2010, consolidated common stock. A. $450,000 B. $530,000 C. $555,000 D. $635,000 E. $525,000 13. Compute the December 31, 2010, consolidated additional paid-in capital. A. $210,000 B. $75,000 C. $1,102,500 D. $942,500 E. $525,000 14. Compute the December 31, 2010 consolidated retained earnings. A. $1,645,375 B. $1,350,000 C. $1,565,375 D. $2,845,375 E. $1,265,375 15. Compute the equity in Vega's income reported by Green for 2010. A. $500,000 B. $300,000 C. $190,375 D. $200,000 E. $290,375

Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted. Green obtained 100% of Vega on January 1, 2006, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2006, 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. 5. Compute the book value of Vega at January 1, 2006. A. $997,500 B. $857,500 C. $1,200,000 D. $1,600,000 E. $827,500 6. Compute the December 31, 2010, consolidated revenues. A. $1,400,000 B. $800,000 C. $500,000 D. $1,590,375 E. $1,390,375 7. Compute the December 31, 2010, consolidated total expenses. A. $620,000 B. $280,000 C. $900,000 D. $909,625 E. $299,625 8. Compute the December 31, 2010, consolidated buildings. A. $1,037,500 B. $1,007,500 C. $1,000,000 D. $1,022,500 E. $1,012,500 9. Compute the December 31, 2010, consolidated equipment. A. $800,000 B. $808,000 C. $840,000 D. $760,000 E. $848,000 10. Compute the December 31, 2010, consolidated land. A. $220,000 B. $180,000 C. $670,000 D. $630,000 E. $450,000 Difficulty: Medium 11. Compute the December 31, 2010, consolidated trademark. A. $50,000 B. $46,875 C. $0 D. $34,375 E. $37,500 12. Compute the December 31, 2010, consolidated common stock. A. $450,000 B. $530,000 C. $555,000 D. $635,000 E. $525,000 13. Compute the December 31, 2010, consolidated additional paid-in capital. A. $210,000 B. $75,000 C. $1,102,500 D. $942,500 E. $525,000 14. Compute the December 31, 2010 consolidated retained earnings. A. $1,645,375 B. $1,350,000 C. $1,565,375 D. $2,845,375 E. $1,265,375 15. Compute the equity in Vega's income reported by Green for 2010. A. $500,000 B. $300,000 C. $190,375 D. $200,000 E. $290,375