Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted.
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...
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Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted.
Green | Vega | ||||||
Revenues | $ | 900,000 | $ | 500,000 | |||
Cost of goods sold | 360,000 | 200,000 | |||||
140,000 | 40,000 | ||||||
Other expenses | 100,000 | 60,000 | |||||
Equity in Vega’s income | ? | ||||||
Retained earnings, 1/1/2023 | 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, 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
Compute the December 31, 2023, consolidated total expenses.
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