Penske Stanza Revenues .... Cost of goods sold Depreciation expense Investment income Dividends declared.. Retained earnings, 1/1/18. Current assets .... Copyrights .... Royalty agreements Investment in Stanza $(700,000) 250,000 150,000 Not given 80,000 $(400,000) 100,000 200,000 -0- 60,000 (600,000) 400,000 900,000 600,000 Not given (500,000) (600,000) ($20 par) (150,000) (200,000) 500,000 400,000 1,000,000 -0- Liabilities... Common stock Additional paid-in capital. (1,380,000) (200,000) ($10 par) (80,000)
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:
On January 1, 2018, Penske acquired all of Stanza’s outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000.
a. As of December 31, 2018, what is the consolidated copyrights balance?
b. For the year ending December 31, 2018, what is consolidated net income?
c. As of December 31, 2018, what is the consolidated
d. As of December 31, 2018, what is the consolidated balance to be reported for
![Penske
Stanza
Revenues ....
Cost of goods sold
Depreciation expense
Investment income
Dividends declared..
Retained earnings, 1/1/18.
Current assets ....
Copyrights ....
Royalty agreements
Investment in Stanza
$(700,000)
250,000
150,000
Not given
80,000
$(400,000)
100,000
200,000
-0-
60,000
(600,000)
400,000
900,000
600,000
Not given
(500,000)
(600,000) ($20 par)
(150,000)
(200,000)
500,000
400,000
1,000,000
-0-
Liabilities...
Common stock
Additional paid-in capital.
(1,380,000)
(200,000) ($10 par)
(80,000)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1f15c41-2464-4f92-89d4-f6eb50e01fa5%2F66725824-f894-42c3-9e8e-071b41ba9db1%2F23c1dn.png&w=3840&q=75)
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