6 Problem 3-23 (Algo) (LO 3-1, 3-4) The following are selected account balances from Penske Company...

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6 Problem 3-23 (Algo) (LO 3-1, 3-4) 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 (834,000) 296,900 235,000 Not given 80,000 (746,000) 594,000 1,074,000 644,000 Not given (544,000) (600,000) ($20 par) (150,000) Note: Parentheses indicate a credit balance. Stanza $ (500,000) 125,000 344,000 60,000 (314,000)) 688,000 430,000 1,188,000 (1,747,000) (200,000) ($10 par) (10,000) On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $816,000 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 $516,000 book value but a fair value of $600,000. 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? 6 Copyrights Royalty agreements Investment in Stanza. Liabilities Common stock Additional paid-in capital 1,074,000 644,000 Not given (544,000) Note: Parentheses indicate a credit balance. (600,000) ($20 par) (150,000) 436,000 1,188,000 (1,747,000) (200,000) ($10 par) (80,000) On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $816,000 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 $516,000 book value but a fair value of $600,000. 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? Consolidated copyrights b Consolidated net income C Consolidated retained eamings d Consolidated goodwill Amounts 6 Problem 3-23 (Algo) (LO 3-1, 3-4) 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 (834,000) 296,900 235,000 Not given 80,000 (746,000) 594,000 1,074,000 644,000 Not given (544,000) (600,000) ($20 par) (150,000) Note: Parentheses indicate a credit balance. Stanza $ (500,000) 125,000 344,000 60,000 (314,000)) 688,000 430,000 1,188,000 (1,747,000) (200,000) ($10 par) (10,000) On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $816,000 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 $516,000 book value but a fair value of $600,000. 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? 6 Copyrights Royalty agreements Investment in Stanza. Liabilities Common stock Additional paid-in capital 1,074,000 644,000 Not given (544,000) Note: Parentheses indicate a credit balance. (600,000) ($20 par) (150,000) 436,000 1,188,000 (1,747,000) (200,000) ($10 par) (80,000) On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $816,000 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 $516,000 book value but a fair value of $600,000. 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? Consolidated copyrights b Consolidated net income C Consolidated retained eamings d Consolidated goodwill Amounts