Question
SB Following are selected accounts for Green... Following are selected accounts for Green Corporation and Vega Company as of December 31, 2020. Several of Green's
SB Following are selected accounts for Green...
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2020. Several of Green's accounts have been omitted.
GreenVegaRevenues$900,000$500,000Cost of goods sold360,000200,000Depreciation expense140,00040,000Other expenses100,00060,000Equity in Vegas income?Retained earnings, 1/1/20201,350,0001,200,000Dividends195,00080,000Current assets300,0001,380,000Land450,000180,000Building (net)750,000280,000Equipment (net)300,000500,000Liabilities600,000620,000Common stock450,00080,000Additional paid-in capital75,000320,000
Green acquired 100% of Vega on January 1,2016, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2016, 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, 2020, consolidated total expenses.
- Compute the December 31, 2020, consolidated buildings.
- Compute the December 31, 2020, consolidated equipment.
- Compute the December 31, 2020, consolidated land.
- Compute the December 31, 2020, consolidated trademark.
- Compute the December 31, 2020, consolidated common stock
- Compute the December 31, 2020 consolidated retained earnings.
- Compute the December 31, 2020, consolidated revenues.
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