Following are selected accounts for Reno Corporation and Vegas Company as of December 31, 2013 Reno Vegas 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 13 1,350,000 1,200,000 Dividends 195,000 80,000 Current assets 298,500 1,380,000 Investment 1,811,875 Land 450,000 180,000 Building (net) 750,000 280,000 Equipment (net) 300,000 500,000 Liabilities 1,440,000 620,000 Common stock 450,000 80,000 Additional paid in capital 75,000 320,000 Reno acquired 100 of Vegas 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 Following are selected accounts for Reno Corporation and Vegas Company as of December 31, 2013 Revenues Cost of goods sold Depreciation expense Other expenses Equity in Vega's income Retained earnings, 1 1 13 Dividends Current assets Investment Land Building (net) Equipment (net) Liabilities Common stock Additional paid in capital Reno $900,000 360,000 140,000 100,000 1,350,000 195,000 298,500 1,811,875 450,000 750,000 300,000 1,440,000 450,000 75,000 Vegas $500,000 200,000 40,000 60,000 1,200,000 80,000 1,380,000 180,000 280,000 500,000 620,000 80,000 320,000 Reno acquired 100 of Vegas 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

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Following are selected accounts for Reno Corporation and Vegas Company as of December 31, 2013. Reno Vegas Revenues $900,000 $500,000 Cost of goods sold 360,000

Following are selected accounts for Reno Corporation and Vegas Company as of December 31, 2013. Reno Vegas 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, 1/1/13 1,350,000 1,200,000 Dividends 195,000 80,000 Current assets 298,500 1,380,000 Investment 1,811,875 Land 450,000 180,000 Building (net) 750,000 280,000 Equipment (net) 300,000 500,000 Liabilities 1,440,000 620,000 Common stock 450,000 80,000 Additional paid-in capital 75,000 320,000 Reno acquired 100% of Vegas 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. image text in transcribed

Following are selected accounts for Reno Corporation and Vegas Company as of December 31, 2013. Revenues Cost of goods sold Depreciation expense Other expenses Equity in Vega's income Retained earnings, 1/1/13 Dividends Current assets Investment Land Building (net) Equipment (net) Liabilities Common stock Additional paid-in capital Reno $900,000 360,000 140,000 100,000 ? 1,350,000 195,000 298,500 1,811,875 450,000 750,000 300,000 1,440,000 450,000 75,000 Vegas $500,000 200,000 40,000 60,000 1,200,000 80,000 1,380,000 180,000 280,000 500,000 620,000 80,000 320,000 Reno acquired 100% of Vegas 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