Question
1. Penske Stanza Revenues $ (816,000 ) $ (724,000 ) Cost of goods sold 290,600 181,000 Depreciation expense 163,000 368,000 Investment income Not given 0
1.
Penske | Stanza | ||||||||
Revenues | $ | (816,000 | ) | $ | (724,000 | ) | |||
Cost of goods sold | 290,600 | 181,000 | |||||||
Depreciation expense | 163,000 | 368,000 | |||||||
Investment income | Not given | 0 | |||||||
Dividends declared | 80,000 | 60,000 | |||||||
Retained earnings, 1/1/18 | (700,000 | ) | (216,000 | ) | |||||
Current assets | 460,000 | 550,000 | |||||||
Copyrights | 950,000 | 447,000 | |||||||
Royalty agreements | 662,000 | 1,122,000 | |||||||
Investment in Stanza | Not given | 0 | |||||||
Liabilities | (554,000 | ) | (1,508,000 | ) | |||||
Common stock | (600,000 | ) | ($20 par) | (200,000 | ) | ($10 par) | |||
Additional paid-in capital | (150,000 | ) | (80,000 | ) | |||||
Note: Parentheses indicate a credit balance.
On January 1, 2018, Penske acquired all of Stanzas outstanding stock for $790,000 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 $520,000 book value but a fair value of $700,000.
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As of December 31, 2018, what is the consolidated copyrights balance?
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For the year ending December 31, 2018, what is consolidated net income?
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As of December 31, 2018, what is the consolidated retained earnings balance?
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As of December 31, 2018, what is the consolidated balance to be reported for goodwill?
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