Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023....

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Accounting

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

Depreciation expense

140,000

40,000

Other expenses

100,000

60,000

Equity in Vegas 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 goodwill associated with this investment.

Compute the December 31, 2023, consolidated revenues.

Multiple Choice

  • $1,400,000.

  • $800,000.

  • $500,000.

  • $1,590,375.

  • $1,390,375.

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