Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted. Revenues Cost of goods sold Depreciation expense Other expenses Equity in Vega's income Retained earnings, 1/1/2023 Dividends Current assets Land Building (net) Equipment (net) Liabilities Common stock Additional paid-in capital Green $ 900,000 360,000 140,000 100,000 ? 1,350,000 195,000 300,000 450,000 750,000 300,000 600,000 450,000 75,000 Vega $ 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 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 common stock.
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted. Revenues Cost of goods sold Depreciation expense Other expenses Equity in Vega's income Retained earnings, 1/1/2023 Dividends Current assets Land Building (net) Equipment (net) Liabilities Common stock Additional paid-in capital Green $ 900,000 360,000 140,000 100,000 ? 1,350,000 195,000 300,000 450,000 750,000 300,000 600,000 450,000 75,000 Vega $ 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 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 common stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Dog
Transcribed Image Text:Multiple Choice
$450,000.
$530,000.
$555,000.
$635,000.
$525,000.
Transcribed Image Text:8
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several
of Green's accounts have been omitted.
Revenues
Cost of goods sold
Depreciation expense
Other expenses
Equity in Vega's income
Retained earnings, 1/1/2023
Dividends
Current assets
Land
Building (net)
Equipment (net)
Liabilities
Common stock
Additional paid-in capital
Green
$ 900,000
360,000
140,000
100,000
?
1,350,000
195,000
300,000
450,000
750,000
300,000
600,000
450,000
75,000
Vega
$ 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
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 common stock.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education