The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Revenues Accounts Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (812,000) 289,200 223,000 Not given 80,000 (708,000) 448,000. 978,000 626,000 Stanza $ (680,000) 170,000 204,000 0 60,000 (270,000) 632,000 378,500 Investment in Stanza Liabilities Common stock Additional paid-in capital 1,048,000 Not given (506,000) 0 (1,262,500) (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 $762,000 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 $466,000 book value but a fair value of $622,000. 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? a. Consolidated copyrights b. Consolidated net income c. Consolidated retained earnings d. Consolidated goodwill Amounts
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Revenues Accounts Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (812,000) 289,200 223,000 Not given 80,000 (708,000) 448,000. 978,000 626,000 Stanza $ (680,000) 170,000 204,000 0 60,000 (270,000) 632,000 378,500 Investment in Stanza Liabilities Common stock Additional paid-in capital 1,048,000 Not given (506,000) 0 (1,262,500) (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 $762,000 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 $466,000 book value but a fair value of $622,000. 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? a. Consolidated copyrights b. Consolidated net income c. Consolidated retained earnings d. Consolidated goodwill Amounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024:
Revenues
Accounts
Cost of goods sold
Depreciation expense
Investment income
Dividends declared
Retained earnings, 1/1/24
Current assets
Copyrights
Royalty agreements
Penske
$ (812,000)
289,200
223,000
Not given
80,000
(708,000)
448,000.
978,000
626,000
Stanza
$ (680,000)
170,000
204,000
0
60,000
(270,000)
632,000
378,500
Investment in Stanza
Liabilities
Common stock
Additional paid-in capital
1,048,000
Not given
(506,000)
0
(1,262,500)
(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 $762,000 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 $466,000 book value
but a fair value of $622,000.
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?
a. Consolidated copyrights
b. Consolidated net income
c. Consolidated retained earnings
d. Consolidated goodwill
Amounts
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