Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please ter 3 E Saved Help Save & Exit Submit The following are selected account balances from Penske Company and Stanza Corporation as of

help please

image text in transcribed
ter 3 E Saved Help Save & Exit Submit The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: 8 Penske Stanza Revenues $ (832 , 009 Cost of goods sold $ (424,800) 296,208 Depreciation expense 227,980 106,800 390,900 Investment income Not given Dividends declared 80,980 60, 090 Retained earnings, 1/1/21 (614, 080) (326,680) Current assets 578,080 698, 090 Copyrights 920, 090 501, ead Royalty agreements 626, 038 1, 160, 968 01:23:41 Investment in Stanza Not given Liabilities (606, 098 (1, 885, 808) Common stock (600, 080) ($20 par) (260,090) ($16 par) Additional paid-in capital (150,098 ) (80, 080) Note: Parentheses indicate a credit balance. On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $874,900 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 $598,000 book value but a fair value of $700,000. 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? Amounts a. Consolidated copyrights b. Consolidated net income C. Consolidated retained earnings d. Consolidated goodwill

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Industrial Relations in Canada

Authors: Fiona McQuarrie

4th Edition

978-1-118-8783, 1118878396, 9781119050599 , 978-1118878392

Students also viewed these Accounting questions