The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Penske $ (845,000) 300,750 160,000 Not given 80,000 (614,000) 438,000 920,000 634,000 Not given (532,000) (600,000) ($20 par) (150,000) Common stock Additional paid-in capital Note: Parentheses Indicate a credit balance. a. Consolidated copyrights b. Consolidated net income c. Consolidated retained earnings d. Consolidated goodwill Stanza $ (528,000) 132,000 228,000 0 60,000 (254,000) 552,000 410,000 1,076,000 Amounts 0 (1,396,000) On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $829,000 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 $482,000 book value but a fair value of $602,000. (200,000) ($10 par) (80,000) 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?
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Penske $ (845,000) 300,750 160,000 Not given 80,000 (614,000) 438,000 920,000 634,000 Not given (532,000) (600,000) ($20 par) (150,000) Common stock Additional paid-in capital Note: Parentheses Indicate a credit balance. a. Consolidated copyrights b. Consolidated net income c. Consolidated retained earnings d. Consolidated goodwill Stanza $ (528,000) 132,000 228,000 0 60,000 (254,000) 552,000 410,000 1,076,000 Amounts 0 (1,396,000) On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $829,000 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 $482,000 book value but a fair value of $602,000. (200,000) ($10 par) (80,000) 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
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Transcribed Image Text:The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024:
Accounts
Revenues
Cost of goods sold
Depreciation expense
Investment income
Dividends declared
Retained earnings, 1/1/24
Current assets
Copyrights
Royalty agreements
Investment in Stanza
Liabilities
Penske
$ (845,000)
300,750
160,000
Not given
80,000
(614,000)
438,000
920,000
634,000
Not given
(532,000)
(600,000) ($20 par)
(150,000)
Common stock
Additional paid-in capital
Note: Parentheses Indicate a credit balance.
a. Consolidated copyrights
b. Consolidated net income
c. Consolidated retained earnings
d. Consolidated goodwill
Stanza
$ (528,000)
132,000
228,000
0
60,000
(254,000)
552,000
410,000
1,076,000
Amounts
0
(1,396,000)
On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $829,000 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 $482,000 book value
but a fair value of $602,000.
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?
(200,000) ($10 par)
(80,000)
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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