Following are selected accounts for Green Corporation and Vega Company as of December 31, 2020. Several of
Question:
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2020. 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 Vega’s income | ? | ||||||
Retained earnings, 1/1/2020 | 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 1,2016, 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.
MC Qu. 56 Compute the December 31...
Compute the December 31, 2020, consolidated total expenses.
1) Compute the December 31, 2020, consolidated trademark.
2) Compute the December 31, 2020, consolidated common stock.
3) Compute the December 31, 2020 consolidated retained earnings.
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Olds