User Account

All Pages

Compute the book value of vega at january

Assignment Help Accounting Basics
Reference no: EM131752649

Problem - Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. 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, 1/1/10

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 obtained 100% of Vega on January 1, 2006, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2006, 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.

1. Compute the book value of Vega at January 1, 2006.

A. $997,500

B. $857,500

C. $1,200,000

D. $1,600,000

E. $827,500

2. Compute the December 31, 2010, consolidated revenues.

A. $1,400,000

B. $800,000

C. $500,000

D. $1,590,375

E. $1,390,375

3. Compute the December 31, 2010, consolidated total expenses.

A. $620,000

B. $280,000

C. $900,000

D. $909,625

E. $299,625

4. Compute the December 31, 2010, consolidated buildings.

A. $1,037,500

B. $1,007,500

C. $1,000,000

D. $1,022,500

E. $1,012,500

5. Compute the December 31, 2010, consolidated equipment.

A. $800,000

B. $808,000

C. $840,000

D. $760,000

E. $848,000

6. Compute the December 31, 2010, consolidated land.

A. $220,000

B. $180,000

C. $670,000

D. $630,000

E. $450,000

7. Compute the December 31, 2010, consolidated trademark.

A. $50,000

B. $46,875

C. $0

D. $34,375

E. $37,500

8. Compute the December 31, 2010, consolidated common stock.

A. $450,000

B. $530,000

C. $555,000

D. $635,000

E. $525,000

9. Compute the December 31, 2010, consolidated additional paid-in capital.

A. $210,000

B. $75,000

C. $1,102,500

D. $942,500

E. $525,000

10. Compute the December 31, 2010 consolidated retained earnings.

A. $1,645,375

B. $1,350,000

C. $1,565,375

D. $2,845,375

E. $1,265,375

11. Compute the equity in Vega's income reported by Green for 2010.

A. $500,000

B. $300,000

C. $190,375

D. $200,000

E. $290,375

Reference no: EM131752649

Questions Cloud

Kanbans are needed for the app switch assembly process : Moe Electronics produces APP switches for NASA. how many kanbans are needed for the APP switch assembly process?
Perform break-even analysis on the machine purchase : Assume a manufacturing operation can increase production of their products by purchasing a new molding machine for $6 Million.
Discuss measures that may be used to assess : Discuss measures that may be used to assess the quality of a firm's reported earnings
Evaluating the negative impact of a civil fraud penalty : Evaluate any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements.
Compute the book value of vega at january : Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Compute the book value of Vega at January
How would you evaluate the crisis : What are the key problems that Gupta should focus on in the short term and in the long term ?How would you evaluate the crisis ?
Address the characteristics that you bring to the job : Address the characteristics that you bring to the job. Describe projects that you have completed and additional skills and characteristics you offer.
Skopek says that since somers changed its method : Skopek says that since Somers changed its method of inventory valuation, there is a consistency problem
Present value of the future cash flow : The present value of the future cash flow per share is $40 for rogue corporation. The current earnings per share is $4.00. The implied price earning ratio is?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Average remaining service life of its active participating

On January 1, 2010, the Parkway Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to its employees, resulting in a prior service cost of $2,180,000 on that date (which it did not fund).

  Using the weighted-average method assign aprils costs to

during april the production department of a process manufacturing system completed a number of units of a product and

  Steckelburg inc produces and sells a single product the

steckelburg inc. produces and sells a single product. the selling price of the product is 150.00 per unit and its

  Jude has a nltcg of 25000 and a nstcl of 30000 what is

jude has a nltcg of 25000 and a nstcl of 30000. what is judes 2011 capital loss deduction if judes adjusted gross

  Depreciation rates for income tax and accounting purposes

It has been suggested that plant and equipment could be replaced more quickly if depreciation rates for income tax and accounting purposes were substantially increased.

  Value-added for a merchandise company

Which of the following activities is most likely to be classified as value-added for a merchandise company?

  Financial statements for the current year

Jiang Ltd has recently produced its financial statements for the current year. The directors are concerned that the return on capital employed

  How is the special period rule for the reporting of fringe

How is the special period rule for the reporting of fringe benefits applied?

  An alcohol solution contains 6 ethanol by mass this

an alcohol solution contains 6 ethanol by mass. this solution is fed to a distillation process which results in a

  Calculate the accumulated depreciation and net book value

A vehicle with cost of 500.000 TL is purchased on January 1 2016 . Its useful life is 1.000.000 km and estimated residual value is 20.000 TL.

  Find conversion costs allocated and cost of goods sold

Post the entries in requirement 1 to T-accounts for applicable Materials and In-Process Inventory Control, Finished Goods Control, Conversion Costs Control.

  Stowers research issues bonds dated january 1 2011 that pay

stowers research issues bonds dated january 1 2011 that pay interest semiannually on june 30 and december 31. the bonds

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd