Problem 3-23 (LO 3-1, 3-4) Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018 Penske $ (700,000) Stanza $ (400,000) Revenues Cost of goods sold Depreciation expense Investment income Dividendsdeclared Retained earnings, 1/1/18 Current assets Copyrights Rovalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital 250,000 150,000 100,000 200,000 Not given 80,000 (600,000) 400,000 900,000 600,000 60,000 (200,000) 500,000 400,000 1,000,000 Not given 0 (500,000) (1,380,000) (600, 000) ($20 par) (200,000) ($10 par) (150,000) (80,000) Note: Parentheses indicate a credit balance On January 1, 2018, Penske acquired all of Stanza's outstanding stock for $680,000 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 $440,000 book value but a fair value of 560,000