Revenues Accounts Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (795,000) 283,250 184,000 Not given 80,000 (732,000) 510,000 1,072,000 722,000 Stanza $ (700,000) 175,000 302,000 0 60,000 (268,000) 668,000 558,500 Investment in Stanza Liabilities Common stock Additional paid-in capital 1,116,000 Not given (562,000) 0 (1,631,500) (600,000) ($20 par) (150,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $818,000 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 $632,000 book value but a fair value of $746,000. Required: a. As of December 31, 2024, what is the consolidated copyrights balance? b. For the year ending December 31, 2024, what is consolidated net income? c. As of December 31, 2024, what is the consolidated retained earnings balance? d. As of December 31, 2024, what is the consolidated balance to be reported for goodwill?
Revenues Accounts Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (795,000) 283,250 184,000 Not given 80,000 (732,000) 510,000 1,072,000 722,000 Stanza $ (700,000) 175,000 302,000 0 60,000 (268,000) 668,000 558,500 Investment in Stanza Liabilities Common stock Additional paid-in capital 1,116,000 Not given (562,000) 0 (1,631,500) (600,000) ($20 par) (150,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $818,000 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 $632,000 book value but a fair value of $746,000. Required: a. As of December 31, 2024, what is the consolidated copyrights balance? b. For the year ending December 31, 2024, what is consolidated net income? c. As of December 31, 2024, what is the consolidated retained earnings balance? d. As of December 31, 2024, what is the consolidated balance to be reported for goodwill?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $818,000 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 $632,000 book value but a fair value of $746,000. Required: a. As of December 31, 2024, what is the consolidated copyrights balance? b. For the year ending December 31, 2024, what is consolidated net income? c. As of December 31, 2024, what is the consolidated
Transcribed Image Text:Revenues
Accounts
Cost of goods sold
Depreciation expense
Investment income
Dividends declared
Retained earnings, 1/1/24
Current assets
Copyrights
Royalty agreements
Penske
$ (795,000)
283,250
184,000
Not given
80,000
(732,000)
510,000
1,072,000
722,000
Stanza
$ (700,000)
175,000
302,000
0
60,000
(268,000)
668,000
558,500
Investment in Stanza
Liabilities
Common stock
Additional paid-in capital
1,116,000
Not given
(562,000)
0
(1,631,500)
(600,000) ($20 par)
(150,000)
(200,000) ($10 par)
(80,000)
Note: Parentheses indicate a credit balance.
On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $818,000 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 $632,000 book value
but a fair value of $746,000.
Required:
a. As of December 31, 2024, what is the consolidated copyrights balance?
b. For the year ending December 31, 2024, what is consolidated net income?
c. As of December 31, 2024, what is the consolidated retained earnings balance?
d. As of December 31, 2024, what is the consolidated balance to be reported for goodwill?
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