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Following are selected account balances from Penske Company and Stanza Corporation as of December Penske Stanza (700,000) (400,000) Revenues 250,000 Cost of goods sold 100,000
Following are selected account balances from Penske Company and Stanza Corporation as of December Penske Stanza (700,000) (400,000) Revenues 250,000 Cost of goods sold 100,000 150,000 200,000 Depreciation expense Investment income Not given Dividends declared 80,000 60,000 Retained earnings, 1/1/15 (200,000) (600,000) 500,000 Current assets 400,000 900,000 Copyrights 400,000 600,000 1,000,000 Royalty agreements Investment in Stanza Not given (1,380,000) (500,000) Liabilities 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, 2015, Penske acquired all of Stanza's outstanding stock for $680,000 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 $440,000 book value but a fair value of S560,000. a. As of December 31, 2015, what is the consolidated copyrights balance? Consolidated copyrights For the year ending December 31, 2015, what is consolidated net income? Consolidated net income As of December 31, 2015, what is the consolidated retained earnings balance
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