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Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues $ (726,000 ) $ (768,000 )

Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:

Penske Stanza
Revenues $ (726,000 ) $ (768,000 )
Cost of goods sold 259,100 192,000
Depreciation expense 198,000 230,000
Investment income Not given 0
Dividends declared 80,000 60,000
Retained earnings, 1/1/18 (604,000 ) (252,000 )
Current assets 514,000 506,000
Copyrights 984,000 472,500
Royalty agreements 650,000 1,088,000
Investment in Stanza Not given 0
Liabilities (570,000 ) (1,248,500 )
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 $759,000 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 $570,000 book value but a fair value of $696,000.

  1. As of December 31, 2018, what is the consolidated copyrights balance?

  2. For the year ending December 31, 2018, what is consolidated net income?

  3. As of December 31, 2018, what is the consolidated retained earnings balance?

  4. As of December 31, 2018, what is the consolidated balance to be reported for goodwill?

    a. Consolidated copyrights
    b. Consolidated net income
    c. Consolidated retained earnings
    d. Consolidated goodwill

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