User Account

All Pages

Compute the book value of vega

Assignment Help Accounting Basics
Reference no: EM13116389

Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted.

  1677_questions_accounting.png

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.

5. 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 

6. 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 

7. Compute the December 31, 2010, consolidated total expenses. 
A. $620,000
B. $280,000
C. $900,000
D. $909,625
E. $299,625 

8. 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 

9. Compute the December 31, 2010, consolidated equipment. 
A. $800,000
B. $808,000
C. $840,000
D. $760,000
E. $848,000 

10. Compute the December 31, 2010, consolidated land. 
A. $220,000
B. $180,000
C. $670,000
D. $630,000
E. $450,000

 
Difficulty: Medium
 

11. Compute the December 31, 2010, consolidated trademark. 
A. $50,000
B. $46,875
C. $0
D. $34,375
E. $37,500

 

12. Compute the December 31, 2010, consolidated common stock. 
A. $450,000
B. $530,000
C. $555,000
D. $635,000
E. $525,000


13. 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 

14. 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 

15. 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: EM13116389

Questions Cloud

Issuance of the bonds : Issuance of the bonds. Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method.
Explain global marketing : global marketing - marketing that targets markets throughout the world - has become an imperative for business.
Find onfidence interval for the mean of the population : Find the 95% confidence interval for the mean, of the population from which the sample was drawn. (Round the values to whole numbers for your confidence interval.)
Find k invoices that overcharge the customer : Find an integer k that the probability is at least .99 that you will find k invoices that overcharge the customer. Use trial and error with the BInomdist function to find k.
Compute the book value of vega : Following are selected accounts for Green Corporation and Vega Company as of December 31, 2010. Several of Green's accounts have been omitted.  Compute the book value of Vega at January 1, 2006
Excess of par increase for this transaction : Mitchell's usual billing rate is $700 per hour, and Fink's stock has a book value of $250 per share. By what amount will Fink's Paid-in capital - excess of par increase for this transaction?
What amount of the above-listed items should be classified : The office space is used equally by dye's sales and accounting departments. What amount of the above-listed items should be classified as general and administrative expenses in dye's multiple-step income statement?
The cumulative effect of this accounting change : with no residual value. At the beginning of 2011, a decision was made to change to the straight-line method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change, net of tax, is
What amount of depreciation expense should be reported : What amount of depreciation expense should be reported in Worthington's income statement for the year ended December 31, 2011?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Characteristics that distinguish nfp from business

Identify characteristics that distinguish NFP from business enterprises. Specifically identify, from most important to least important, five accounting issues relevant to NFP financial reporting and explain your rationale by reference to existing ..

  Computing break-even point and after-tax target profit

Jo Manufacturing Company provides the following data from 2011: 20,000 units were sold for $60 each; total variable expenses were 900,000 and total fixed expenses were $240,000. Jo's income tax rate is 30%.

  Effective and efficient statistical measurements

What are some advantages and disadvantages of each: (a) team-based, (b) network-based, and (c) boundaryless organizations?

  Explain the accounting alternatives

Explain the accounting alternatives that Bonanza Trading Stamps, Inc. should consider for the recognition of its revenues and related expenses.

  Annual coupon rate-maturity and price

Which of the following 3 bonds should I invest in assuming a 7% interst rate? Please show how you manually calculated this.

  Relevant financial information for investors

Assume there is a well-financed, one-year-old company in the biotech industry that is concentrating on developing chemical-based compounds that are aimed at developing drugs to reduce the effects or onset of Alzheimer's Disease.

  Calculates actual after tax real rate of return

An individual actually earned a 4% nominal return last year. Prices went up by 3% over the year. Given that the investment income was subject to a federal tax rate of 28% and a state, and local tax rate of 6%

  Journal entries-percentage of completion method

Record the journal entries for each year using the % of completion method. Show the partial accounts on the December 31 balance sheet for each year. Show the January 1 to Dec 31 Income statement for each year.

  Tax reduction amount for donation

Allison is the sole shareholder of Destiny Corporation, which operates a travel agency for business travelers. Allison would like the corporation to donate some used computers to a local private school dedicated to the education of young ladies.

  Letter of intent for red cross

Please help me research The American Red Cross Organization and determine a need based on an existing program or even develop a new program that would be beneficial to the organization and the community that it serves.

  Evaluating an economic event

What does it mean to critically evaluate an economic event or resource in the context of an accounting standard  and what is actually being evaluated and how?

  Finding components of mixed overhead costs

Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility.

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