The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske $ (746,000) 266,100 201,000 Not given 80,000 (670,000) 434,000 984,000 688,000 Not given (546,000) (600,000) ($20 par) (150,000) Note: Parentheses indicate a credit balance. Stanza $ (792,000) 198,000 318,000 0 60,000 (214,000) 560,000 537,500 1,130,000 0 (1,517,500) (200,000) ($10 par) (80,000) On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $780,000 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 $592,000 book value but a fair value of $760.000
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske $ (746,000) 266,100 201,000 Not given 80,000 (670,000) 434,000 984,000 688,000 Not given (546,000) (600,000) ($20 par) (150,000) Note: Parentheses indicate a credit balance. Stanza $ (792,000) 198,000 318,000 0 60,000 (214,000) 560,000 537,500 1,130,000 0 (1,517,500) (200,000) ($10 par) (80,000) On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $780,000 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 $592,000 book value but a fair value of $760.000
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, 2021:
Revenues
Cost of goods sold
Depreciation expense
Investment income
Dividends declared
Retained earnings, 1/1/21
Current assets
Copyrights
Royalty agreements
Investment in Stanza
Liabilities
Common stock
Additional paid-in capital
$
Penske
(746,000)
266,100
201,000
Not given
80,000
(670,000)
434,000
984,000
688,000
Not given
(546,000)
(600,000) ($20 par)
(150,000)
Note: Parentheses indicate a credit balance.
Stanza
$ (792,000)
198,000
318,000
0
60,000
(214,000)
560,000
537,500
1,130,000
0
(1,517,500)
(200,000) ($10 par)
(80,000)
On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $780,000 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 $592,000 book value
but a fair value of $760,000.
Transcribed Image Text:a. As of December 31, 2021, what is the consolidated copyrights balance?
b. For the year ending December 31, 2021, what is consolidated net income?
c. As of December 31, 2021, what is the consolidated retained earnings balance?
d. As of December 31, 2021, what is the consolidated balance to be reported for goodwill?
Consolidated copyrights
Consolidated net income
a.
b.
C. Consolidated retained earnings
d.
Consolidated goodwill
Amounts
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