Question
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. 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, 2023. 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 Vegas income | ? | ||||||
Retained earnings, 1/1/2023 | 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 | |||||
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, 2019, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2019, 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, 2023, consolidated additional paid-in capital.
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