Question
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: On January 1, 2018, Penske acquired all of Stanzas
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:
On January 1, 2018, Penske acquired all of Stanzas 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.
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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?
Stanza (500,000) 125,000 344,000 Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 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) 60,000 (314,000) 688,000 436,000 1,188,000 (1,747,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance
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