Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021 $ Revenues Cost of goods sold Depreciation expense

image text in transcribed
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021 $ Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Connon stock Additional pald-In capital Penske (812,000) 289,26 223,000 Not given Be,eee (708,000) 448,000 978.ece 626,00 Not given (586.600) (Gee,eee) (52e par) (150,eee) Stanza (68e, eee) 170,00 204,000 @ 6e,eee (270,000) 632.ee 378,500 1,048.000 0 (1,262,500) (200,eee) (510 par) (80,600) Note: Parentheses Indicate a credit balance. A On January 1, 2021. Penske acquired all of Stanza's outstanding stock for $762,000 fair value in cash and common stock. Penske also pald $10,000 in stock issuance costs. At the date of acquisition, copyrights with a six-year remaining life) have a $466,000 book value but a fair value of $622,000 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 b. Consolidated copyrights Consolidated net income Consolidated retained earnings Consolidated goodwill

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

College Accounting Ch 1-14

Authors: John Wild, Vernon Richardson, Ken Shaw

1st Edition

0073346896, 9780073346892

More Books

Students also viewed these Accounting questions

Question

Explain key approaches to implementing LMD

Answered: 1 week ago