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 book value of Vega at January 1, 2009. Give detail calculation.

A.

$997,500.

B.

$857,500.

C.	$1,200,000.

D.	$1,600,000.

E.

$827,500.

Vega $900,000 $500,000 360,000 200,000 40,000 60,000 Green Revenues Cost of goods sold Depreciation expense Other expenses Equity in Vega's income Retained earnings, 1/1/13 Dividends Current assets Land Building (net) Equipment (net) Liabilities Common stock Additional paid-in capital 140,000 100,000 1,350,000 1,200,000 80,000 300,000 1,380,000 450,000180,000 750,000 280,000 300,000500,000 600,000620,000 80,000 75,000320,000 195,000 450,000