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