Question
3. Award: 3.33 points The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Current assets Copyrights
3. Award: 3.33 points The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Current assets Copyrights Royalty agreements Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Penske (788,000) 280,800 218,000 Not given 80,000 Stanza (592,000) 148,000 328,000 0 60,000 (330,000) 664,000 486,500 1,056,000 (738,000) 502,000 914,000 682,000 Investment in Stanza Liabilities Common stock Additional paid-in capital Not given (606,000) (600,000) ($20 par) (150,000) 0 (1,540,500) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $870,000 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 $576,000 book value but a fair value of $684,000. 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? a. Consolidated copyrights b. Consolidated net income C. Consolidated retained earnings d. Consolidated goodwill Amounts
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