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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 Penske $ (742,000) 264,700 187,000 Not given. 80,000 (788,000) 498,000 990,000 Investment in Stanza Liabilities Common stock Additional paid-in capital 772,000 Not given (600,000) (600,000) ($20 par) (150,000) Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 0 (1,357,088) (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 $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 $456,000 book value but a fair value of $660,000. 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 $ 1,194,000

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 Penske $ (742,000) 264,700 187,000 Not given. 80,000 (788,000) 498,000 990,000 Investment in Stanza Liabilities Common stock Additional paid-in capital 772,000 Not given (600,000) (600,000) ($20 par) (150,000) Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 0 (1,357,088) (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 $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 $456,000 book value but a fair value of $660,000. 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 $ 1,194,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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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 Penske $ (742,000) 264,700 187,000 Not given. 80,000 (788,000) 498,000 990,000 Investment in Stanza Liabilities Common stock Additional paid-in capital 772,000 Not given (600,000) (600,000) ($20 par) (150,000) Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 0 (1,357,088) (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 $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 $456,000 book value but a fair value of $660,000. 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 $ 1,194,000
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 Penske $ (742,000) 264,700 187,000 Not given. 80,000 (788,000) 498,000 990,000 Investment in Stanza Liabilities Common stock Additional paid-in capital 772,000 Not given (600,000) (600,000) ($20 par) (150,000) Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 0 (1,357,088) (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 $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 $456,000 book value but a fair value of $660,000. 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 $ 1,194,000
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