Answered step by step
Verified Expert Solution
Question
1 Approved Answer
IT'S THE 3RD TIME I'VE POSTED THIS PROBLEM AND I'M STILL NOT GETTING THE RIGHT ANSWER FOR B & C. PLEASE PUT MORE ATTENTION. THANKS.
IT'S THE 3RD TIME I'VE POSTED THIS PROBLEM AND I'M STILL NOT GETTING THE RIGHT ANSWER FOR B & C. PLEASE PUT MORE ATTENTION. THANKS.
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018 Penske Stanza s (592,00e) $(788,000) 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 280,800 218,000 Not given 80,000 (738,000) 502,000 914,000 682,000 Not given (606,000) 148,000 328,000 0.62 points 60,000 (330,0e0) 664,000 486,506e 1,056,000 (1,540,580) (600,000) ($20 par) (200,000) ($10 par) (150,000) (80,e00) Note: Parentheses indicate a credit balance On January 1, 2018, Penske acquired all of Stanza's outstanding stock for $870,000 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 $576,000 book value but a fair value of $684,000 a. As of December 31, 2018, what is the consolidated copyrights balance? b. For the year ending December 31, 2018, what is consolidated net income? c. As of December 31, 2018, what is the consolidated retained earnings balance? d. As of December 31, 2018, what is the consolidated balance to be reported for goodwill? Answer is complete but not entirely correct. a. Consolidated copyrights b. Consolidated net income c. Consolidated retained earnings 1,490,500 $ 388,000 $1,046,000 $152,000 Consolidated goodwill Answer is complete but not entirely correct. a. Consolidated copyrights b. C. Consolidated retained earnings d. Consolidated goodwill $ 1,490,500 $ 297,700 $ 955,700 $ 152,000 Consolidated net incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started